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Posted by: Homeworkhelp
Price Quoted by Student: $5
Posted On: 2018-07-01 01:01:31
 
Question
You have been offered a unique investment opportunity. If you invest $20,000 ​today, you will receive $1,000 one year from​ now, $3,000 two years from​ now, and $20,000 ten years from now.

a. What is the NPV of the investment opportunity if the interest rate is 12% per​ year? Should you take the​opportunity?
b. What is the NPV of the investment opportunity if the interest rate is 8% per​ year? Should you take the opportunity?

 
TUTORIAL PREVIEW
a.
   
Year
Cash flow
0
-20,000
($20,000.00)
1
1,000
$892.86

Solutions
SOLUTION PREVIEW a.    
Price $5
Attachment 1: You have been offered.xls
Solution Posted By: Homeworkhelp    Posted on: 01-07-2018