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Part $1$

Elinore is asked to invest

$ $5$ comma $000$$$5,000$

in a$$friend$\text{'}$s business with the promise that the friend will repay

$ $5$ comma $500$$$5,500$

in one year. Elinore finds her best alternative to this$$investment$,$ with similar$$risk$,$ is one that will pay her

$ $5$ comma $450$$$5,450$

in one year. U$.$S$.$ securities of similar term offer a rate of return of

$66\%.$

What is the opportunity cost of capital in this$$case$?$