Capital estimate to leave the decision unchanged

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Your brother want to borrow $10500 from you.he has offered to pay you back $12750 in a year.if the cost of capital of this investment opportunity is 8%, what is its NVP? 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: EM131444673

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