You have invested in a business that proudly reports that it is profitable. Your investment of $4,900 has produced a profit of $300. The managers think that if you leave your $4,900 invested with them, they should be able to generate $300 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 7.9%. Should you remain invested in this firm