Your brother wants to borrow $10,250 from you. He has offered to pay you back $12,500 in
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Your brother wants to borrow $10,250 from you. He has offered to pay you back $12,500 in a year. If the cost of capital of this investment opportunity is 8%, 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.
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Related Book For 
Corporate Finance The Core
ISBN: 9781292431611
5th Global Edition
Authors: Jonathan Berk, Peter DeMarzo
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