Assignment: New Present Value
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?
Format your assignment according to the give formatting requirements:
a. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
b. The response also includes a cover page containing the title of the assignment, the course title, the student's name, and the date. The cover page is not included in the required page length.
c. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.