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You have invested in a business that proudly reports that it is profitable. Your investment of $5,500 has produced a profit of $310. The managers
You have invested in a business that proudly reports that it is profitable. Your investment of $5,500 has produced a profit of $310. The managers think that if you leave your $5,500 invested with them, they should be able to generate $310 per year in profits for you in perpetuity. Evaluating other investment opportunities, you note that other long-term investments of similar risk offer an expected return of 8.4%. Should you remain invested in this firm? The expected return of your investment is (Round to one decimal place )
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