You have been offered a unique investment opportunity. If you invest $10,000 today, you will receive $500 one year from now, $1500 two years from now, and $10,000 ten years from now. a. What is the NPV of the opportunity if the cost of capital is 6% per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 2% per year? Should you take it now?

Economics Your friend is inviting you to this exciting investment opportunity. To get in it costs 10,000 today but you will get 10,500 at the end of the year. a) What is the Internal Rate or Return of the investment opportunity? b) Suppose that the risk-free government bond rate is 5 percent. Should you still invest with your friend?

You are considering an investment with the following characteristics. The investment will cost you $551 today, but will pay you annual benefits of $107 for 11 years starting at the end of the first year. The relevant opportunity cost of capital is 9%. What is the NPV of this investment? Round your answer to two decimals. Enter negative values with a - sign. Don't enter the $-symbol as part of your answer.

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You are thinking about investing in a project that will provide you a cash flow of $78922 in 3 years and of $88519 in 4 years.  If your required return on investments of this risk is 15.14%, how much are you willing to pay for this opportunity? Round to 2 decimal places.  Include a dollar sign ($) or percent (%) as appropriate. Answer:

If you invest $73,300 in a project which yields an annual return of $13,500, how many years will it take to recover your investment if the annual interest rate is 4.5%? a 7 b 9 c. 5 d 8 e. 6

You are considering the purchase of real estate that will provide perpetual income that should average $54,000 per year. How much will you pay for the property if you believe its market risk is the same as the market portfolio’s? The T-bill rate is 6%, and the expected market return is 9.0%. Property Value =

1. You have an opportunity to invest $50,000 now in return for $60,000 in one year. If your cost of capital is 8%, what is the NPV of this investment?

You are considering an investment in a clothes distributer. The company needs $106,000 today and expects to repay you $124,000 in a year from now. What is the IRR of this investment opportunity? Given the riskiness of the investment opportunity, your cost of capital is 15%. What does the IRR rule say about whether you should invest? What is the IRR of this investment opportunity? The IRR of this investment opportunity is %. (Round to two decimal places.)

(Use Calulator or Formula Approach) You are offered an investment that will pay you $200 in one year, $400 the next year, $600 the next year and $800 at the end of the fourth year. You can earn 12 percent on very similar investments. What is the most you should pay for this one?