You have been offered a unique investment opportunity. If you invest $10,400 today, you will receive $520 one year from now, $1,560 two years from now, and $10,400 ten years from now. What is the NPV of the opportunity if the cost of capital is 6.5% per year? 2,204 -2,996 -1,903 803

You have been offered a unique investment opportunity. If you invest $10,400 today, you will receive $520 one year from now, $1,560 two years from now, and $10,400 ten years from now. What is the NPV of the opportunity if the cost of capital is 6.5% per year? 2,204 -2,996 -1,903 803

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 22P

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Question

Please show all equations and work as needed. Make the correct answer clear. If possible, please type work so it can be copied. Thank you.

You have been offered a unique investment
opportunity. If you invest $10,400 today, you will
receive $520 one year from now, $1,560 two
years from now, and $10,400 ten years from
now. What is the NPV of the opportunity if the
cost of capital is 6.5% per year?
2,204
-2,996
-1,903
803

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