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Business, 16.03.2020 16:36 alexiagreen1212

Elinore is asked to invest $ 4 comma 900 in a friend's business with the promise that the friend will repay $ 5 comma 390 in one year's time. Elinore finds her best alternative to this investment, with similar risk, is one that will pay her $ 5 comma 341 in one year's time. U. S. securities of similar term offer a rate of return of 7%. What is the opportunity cost of capital in this case?

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