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You are thinking about investing $5000 in your friend's landscaping business. Even though you know the investment is risky and you can't be sure of
You are thinking about investing
$5000
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 worth
$5750
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
10%
for the year. What should you do?
The present value of the return is
$nothing.
(Round to the nearest cent.)
B) future value=
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