ACCT 551

You have been offered a unique investment opportunity. If you invest$15,000 today, you will receive $ 750 one year from now,$2,250 two years from now, and $ $15,000 ten years from now.

a. What is the NPV of the investment opportunity if the interest rate is 10% per year? Should you take the opportunity?

b. What is the NPV of the investment opportunity if the interest rate is 6% per year? Should you take the opportunity?