Business
Business, 30.05.2020 03:04, jrbskso

Elinore is asked to invest $5000 in a friend's business with the promise that the friend will repay 5500 in one year's time. Elinore finds her best alternative to this investment, with similar risk, is one that will pay her 5400 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? A. 6% B. 8% C. 9% D. 10%

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