You are thinking about investing $5,034 in your friend's landscaping business. Even though you know...
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Finance
You are thinking about investing
$5,034
in your friend's landscaping business. Even though you know the investment is risky and you can't be sure, you expect your investment to be worth
$5,740
next year. You notice that the rate for one-year Treasury bills is
1%.
However, you feel that other investments of equal risk to your friend's landscape business offer an expected return of
7%
for the year. What should you do?
The present value of the return is
$nothing.
(Round to the nearest cent.)You should
invest in the business
not invest in the business
. (Select from the drop-down menu.)
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