Elinore is asked to invest 5000 in a friends business with, Ask an Expert

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Elinore is asked to invest $5,000 in a friend's business with the promise that the friend will repay $5,500 in one year's time. Elinore finds her best alternative to this investment, with similar risk, is one that will pay her $5,450 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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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92837020

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