Question: You are thinking about investing $ 4 , 5 8 9 in your friend's landscaping business. Even though you know the investment is risky and

You are thinking about investing $4,589 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 $5,619 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 8% for the year. What should you do?
The present value of the return is $ (Round to the nearest cent.)
You are thinking about investing $ 4 , 5 8 9 in

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

You are thinking about investing $ 4 , 8 1 9 in your friend's landscaping business. Even though you is risky and you can't be sure, you expect your investment to be worth $ 5 , 7 1 2 next year. You...

Q:

You are thinking about investing $ 4 comma 859$4,859 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...

Q:

If the rate of inflation is 4.7%, what nominal interest rate is necessary for you to earn a 3.1% real interest rate on your investment? (Note: Be careful not to round any intermediate steps less than...

Q:

You are thinking about investing $4,754 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 $5,647 next...

Q:

K You are thinking about investing $4626 in your friend's landscaping business. Even though you know the investment is risky and you can't be sure of the outcome, you expect your investment to be...

Q:

You are thinking about investing $4,890 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 $5,605 next...

Q:

You are thinking about investing $4,942 in your friend's landscaping business. Even though you know the investment s risky and you can't be sure, you expect your investment to be worth $5,613 next...

Q:

. If you own 15,000 shares of stock of Brookfield Asset Management and it pays a dividend of $0.18 per share, then what is the total dividend you will receive? 2. You own 20% of the stock of a...

Q:

please answer all parts of the question and most importantly round the number to correct decimal places and i will give you a thumbs up Homework: Homework Chapter Question 9, P 5-26 (similar to) HW...

Q:

You are thinking about investing $ 4 comma 800 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...

Q:

QUESTION 14 Kem Corporation's 5-year bonds yield 6.60% and 5-year T-bonds yield 3.40%. The real risk-free rate is r-2.5%, the default risk premium for Kern's bonds is DRP-1.90% versus zero for...

Q:

Refer to the lamina of Problem 13, for which we found Iy = 5(5/12. Find (a) m (b) x (c) IL Where L is a line through (x, y) parallel to the y-axis.

Q:

In preparing payroll checks, the computer omitted 2 4 of a total of 2 , 4 0 8 checks which should have been processed. The error was not detected until the supervisor distributed the checks. The best...

Q:

Pharoah Company reported the following amounts for 2022: Raw materials purchased $95,200 Beginning raw materials inventory 5,824 Ending raw materials inventory 5,040 Beginning finished goods...