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Elinore is asked to invest $5,200 in a friend's business with the promise that the friend will repay $5,720 in one year's time. Elinore finds

Elinore is asked to invest $5,200 in a friend's business with the promise that the friend will repay $5,720 in one year's time. Elinore finds her best alternative to this investment, with similar risk, is one that will pay her $5,668 in one year's time. U.S. securities of similar term offer a rate of return of 6%. What is the opportunity cost of capital in this case?

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