#7

Your brother wants to borrow $9,750 from you. He has offered to pay you back $13,250 in a year. If the cost of capitat of this investment opportunity is 10%, what is is NPV? $ hould you undertuke the investment opportunity? Calculate the IRRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decislon unchanged. If the cont of capital of this investment opportunity is 10%, what is is NPV? The NPV of the imvestrnent is 5 (Round to the nearest cent) Should you undertake the imvestment opportunity? Since the NPV is you should the deall. (Select trom the drop-down menus.) Calculate the IRR and use it to determine the maximum deviation allowable in the coat of captal estimate to leave the decision uncharged. The IRR is Ko. (Round to two decimat places.) The maximum deviation allowable in the cost of capital is 6. (Round to two decimal places.)