Find cost of capital estimate to leave decision unchanged

Reference no: EM131949769

Question: Your brother wants to borrow 10000 from you. He has offered to pay you back $12750 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: EM131949769

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Find cost of capital estimate to leave decision unchanged : Your brother wants to borrow 10000 from you. He has offered to pay you back $12750 in a year. If the cost of capital of this investment opportunity is 9%.

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