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FIN 341 Fall 2021 Principles of Finance Ex Question 18, P 5-41 (sim... Part 1 of 2 HW Score: 22.38%, 7.83 of 35 points
FIN 341 Fall 2021 Principles of Finance Ex Question 18, P 5-41 (sim... Part 1 of 2 HW Score: 22.38%, 7.83 of 35 points O Points: 0 of 1 You have invested in a business that proudly reports that it is profitable. Your investment of $5,400 has produced a profit of $300. The managers think that if you leave your $5,400 invested with them, they should be able to generate $300 per year in profits for you in perpetuity. Evaluating other investment opportunities, you note that other long-term investments of similar risk offer an expected return of 7.7%. Should you remain invested in this firm? The expected return of your investment is ***** %. (Round to one decimal place.)
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