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Your friend has invented a new type of mouse trap. To help with production and marketing costs, she has asked you to make a $25,000
Your friend has invented a new type of mouse trap. To help with production and marketing costs, she has asked you to make a $25,000 investment today, and she will give you $51,000 four years from today. Due to the risks involved, you require a 20% annualized return for this venture to be worth your while. Should you invest in this? (Hint: what would $25,000 invested today be worth in 4 years?)
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