Accounting: What the Numbers Mean
Accounting: What the Numbers Mean
12th Edition
ISBN: 9781308841380
Author: David H. Marshall, Wayne W. McManus, Daniel F. Viele
Publisher: McGraw Hill
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Chapter 3, Problem 3.7E

Exercise 3.7

LO 2

Compare investment alternatives Two acquaintances have approached you about investing in business activities in which each is involved. Velterine is seeking $4,000 and Francis needs $5,000. One year from now your original investment will be returned, along with S740 income from Velterine or $850 income from Francis. You can make only one investment.

Required:

  1. Which investment would you prefer? Why? Round your percentage answer to two decimal places.
  2. What other factors should you consider before making either investment?

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