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Npv of the opportunity

You have been offered the following investment opportunity: if you invest $16,000 today, you will receive $4,000 two years from now, $7,000 four years from now, and $9,000 six years from now.

a) What is the NPV of the opportunity if the interest rate is 6% per year? Should you take this opportunity?

b) What is the NPV of the opportunity if the interest rate is 2% per year? Should you take this opportunity?

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Npv of the opportunity

Reference No:- TGS0551365

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Ensuring quality final submissions

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Npv of the opportunity

Reference No:- TGS0551365

Recent Questions Asked Finance Basics

Q : Ensuring quality final submissions

Q : Why risk assessment methodology is quantitative-qualitative

Q : Calculate the npv using discount factor

Q : How mobile computing changed shopping behavior of consumers

Q : Npv of the opportunity

Q : Network devices and end nodes in network

Q : Financial statement analysis

Q : Expected real rate of return

Q : Case study of kathleen dancewear

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