What is the opportunity cost of capital in this case

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Reference no: EM131583669

Elinore is asked to invest $4,700 in a friend's business with the promise that the friend will repay $5,170 in one year's time. Elinore finds her best alternative to this investment, with similar risk, is one that will pay her $5,076 in one year's time. U. S. securities of similiar term offer a rate of return of 6%. What is the opportunity cost of capital in this case?

Reference no: EM131583669

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