Estimating the cost of capital

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Reference no: EM131526751

Consider a project with a single cash flow of $1000 which will occur 10 years from now. There is no initial cost. The cost of capital is 15%. In this case, is it worse to commit a 10% error in estimating the cash flow, or to commit a 10% error in estimating the cost of capital? Make sure to show your work.

Reference no: EM131526751

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