You are thinking about investing $5,007 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 $5,638 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 9% for the year. What should you do? The present value of the return is $ You should invest in the business (Round to the nearest cent.) (Select from the drop-down menu.) not invest in the business
You are thinking about investing $5,007 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 $5,638 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 9% for the year. What should you do? The present value of the return is $ You should invest in the business (Round to the nearest cent.) (Select from the drop-down menu.) not invest in the business
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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10.
Transcribed Image Text:You are thinking about investing $5,007 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 $5,638 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 9% for
the year. What should you do?
The present value of the return is $
You should
invest in the business
(Round to the nearest cent.)
(Select from the drop-down menu.)
not invest in the business
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