Question
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
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 comma 776
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
$nothing
.
(Round to the nearest cent.)
You should
invest in the business
not invest in the business
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