Calculate the irr and use it to determine the maximum


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 11 %, 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 11 %, what is its NPV? The NPV of the investment is $ Since the NPV is __ positive negative, you should __ take not take the deal. Calculate the IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged. The IRR is %. The maximum deviation allowable in the cost of capital is %

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Financial Management: Calculate the irr and use it to determine the maximum
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