If it was truly your fault, then you should just buy him a new camera, if the camera was quite old and you were not responsible, then, he will understand. If it was in my possession, I'd feel obligated to have it repaired.
Put yourself in his shoes. You lent him your video camera. And he's now in your situation. How woudl you want this to be handled?
(Have you taken it anywhere to see what's wrong with it? It might me as simple as a dead battery)
NOTE: before returning camera, remove any incriminiating tapes from said camera.
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Free your heart from hatred. Free your mind from worries. Live simply. Give more. Expect less.
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