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You have invested in a business that proudly reports that it is profitable. Your investment of $4900 has produced a profit of $303 . The

You have invested in a business that proudly reports that it is profitable. Your investment of $4900 has produced a profit of $303 . The managers think that if you leave your $4900 invested with them, they should be able to generate $303 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 %7.6. Should you remain invested in this firm

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