Two acquaintances have approached you about investing in business activities in which each is involved. Velterine is seeking $4,000 and Francis needs $5,000. One year from now your original investment will be returned, along with $740 income from Velterine or $850 income from Francis. You can make only one investment.

Required:

a. Which investment would you prefer? Why? Round your percentage answer to two decimal places.

b. What other factors should you consider before making either investment?