Question
You are thinking about investing $4,768 in your friend's landscaping business. Even though you know the investment is risky and you can't be sure, you
You are thinking about investing $4,768 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
$5,665 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 7% for the year. What should you do? The present value of the return is $ _____ .
(Round to the nearest cent.)
You should
a. invest in the business
b. not invest in the business
. (Select from the drop-down menu.)
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