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PROBLEM SET 3.2 Qza 1, Ziggy has a chance to invest in his friend David's new startup company, Sound & Vision, Ltd. David has promised
PROBLEM SET 3.2 Qza 1, Ziggy has a chance to invest in his friend David's new startup company, Sound & Vision, Ltd. David has promised Ziggy that if he makes a $100,000 investment, Sound & Vision will begin paying a 10 percent return in five years. David expects this return to continue at that level for decades to come. Ziggy currently earns 5 percent on his account at Aladdin Bank, 6 percent on his investment in Scary Monsters Industries, a large NYSE traded company, and 7 percent on his investment in Major Tom Bakeries, a company started by another friend. Should Ziggy make the investment in David's new company
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