You have been offered a unique investment opportunity. If you invest $10,200 ?today, you will receive $510 one year from? now, $1,530 two years from? now, and $10,200 ten years from now.
a. What is the NPV of the opportunity if the cost of capital is 6.2% per? year? Should you take the? opportunity?
b. What is the NPV of the opportunity if the cost of capital is 2.2% per? year? Should you take it? now?