Assume an investor can choose between two projects to invest in. The investor knows project A will earn 5% next year, while project B will earn 8% next year. Assuming the two projects are of the same risk, what is the opportunity cost of capital of accepting project B?

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02-07-2024
Business

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Assume an investor can choose between two projects to invest in. The investor knows project A will earn 5% next year, while project B will earn 8% next year. Assuming the two projects are of the same risk, what is the opportunity cost of capital of accepting project B?

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