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# Your brother wants to borrow \$ 10,250 from you. He has offered to pay you back \$ 12, 750 in a year. If the cost of capital of this investment

Your brother wants to borrow \$ 10,250 from you. He has offered to pay you back \$ 12, 750 in a year. If the cost of capital of this investment opportunity is 12 %, 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. If the cost of capital of this investment opportunity is 12 %, what is its​ NPV? The NPV of the investment is ​\$?

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