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Your brother wants to borrow $ 9 comma 500$9,500 from you. He has offered to pay you back $ 13 comma 000$13,000 in a year.

Your brother wants to borrow $ 9 comma 500$9,500 from you. He has offered to pay you back $ 13 comma 000$13,000 in a year. If the cost of capital of this investment opportunity is 10 %10%, 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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