Two acquaintances have approached you about investing in business activities in which each is involved. Simone is seeking $545, and Riley needs $650. One year from now, your original investment will be returned, along with $49 intome from Simone or $52 income from Riley. You can make only one investment. Required: a-1. Compute the ROI of Simone and Riley. (Round your answers to 2 decimal places.) ROI Simone Riley a-2. Which investment would you prefer? O Simone Riley b. What other factors should you consider before making either investment? Fluctuation Pisk
Two acquaintances have approached you about investing in business activities in which each is involved. Simone is seeking $545, and Riley needs $650. One year from now, your original investment will be returned, along with $49 intome from Simone or $52 income from Riley. You can make only one investment. Required: a-1. Compute the ROI of Simone and Riley. (Round your answers to 2 decimal places.) ROI Simone Riley a-2. Which investment would you prefer? O Simone Riley b. What other factors should you consider before making either investment? Fluctuation Pisk
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Two acquaintances have approached you about investing in business activities in which each is involved. Simone is seeking $545, and
Riley needs $650. One year from now, your original investment will be returned, along with $49 income from Simone or $52 income
from Riley. You can make only one investment.
Required:
a-1. Compute the ROI of Simone and Riley. (Round your answers to 2 decimal places.)
ROI
Simone
%
Riley
a-2. Which investment would you prefer?
Simone
Riley
b. What other factors should you consider before making either investment?
O Fluctuation
Risk
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