Question
You are offered a potential investment opportunity. The cost of the investment is $5,500. In return, you will receive $1,000 per year for ten years.
You are offered a potential investment opportunity. The cost of the investment is $5,500. In return, you will receive $1,000 per year for ten years. You have determined that this investment should provide at least a 10% return. Would you be willing to purchase this investment? Answer by comparing the investments expected return to your required return of 10%. A. Dont invest since it has an expected return of 12.66% B. Yes. Invest since it has an expected return of 12.66% C. Dont invest because you require a 10% return D. Yes. Invest since you would be willing to pay as much as $8.500. E. Cannot determine without more information
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