New Present Value

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You have been offered a unique investment opportunity. If you invest $10,000
​today, you will receive $500
one year from​ now, $1,500
two years from​ now, and $10,000
ten years from now.

a. What is the NPV of the  investment opportunity if the interest rate is 6%
per​ year?  Should you take the​ opportunity?

b. What is the NPV of the  investment opportunity if the interest rate is 2%
per​ year?  Should you take the​ opportunity?

    • 6 years ago
    • 35
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