You have been offered a unique investment opportunity. If you invest $25,000 ?today, you will receive $$1,250 one year from? now, $3,750 two years from? now, and $25,000 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?