Cost of capital estimate to leave the decision unchanged

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Reference no: EM131624506

Your brother wants to borrow $9,500 from you. He has offered to pay you back $12,250 in a year. If the cost of capital of this investment opportunity is 9 %?, what is its? NPV? Should you undertake the investment? opportunity? Calculate the IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged.

Reference no: EM131624506

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