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Determine the maximum deviation allowable in the cost

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Question 1: Your brother wants to borrow $30,000 from you. he has offered to pay you back $36,000 in three year, if the cost of capital of this investment opportunity is 6% what is NPV? Should you undertake the opportunity? Calculate IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged ,Explain clearly

Reference no: EM132523062

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