You are thinking about investing $4,635 in your friend's landscaping business. Even though you know the...

 

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You are thinking about investing $4,635 in your friend's landscaping business. Even though you know the investment is risky and you can't be sure, you expect your investment to be worth $5,639 next year. You notice that the rate for one-year Treasury bills is 1%. However, you feel that other investments of equal risk to your friend's landscape business offer an expected return of 10% for the year. What should you do? The present value of the return is $ (Round to the nearest cent.) You are thinking about investing $4,635 in your friend's landscaping business. Even though you know the investment is risky and you can't be sure, you expect your investment to be worth $5,639 next year. You notice that the rate for one-year Treasury bills is 1%. However, you feel that other investments of equal risk to your friend's landscape business offer an expected return of 10% for the year. What should you do? The present value of the return is $ (Round to the nearest cent.)

Answer rating: 100% (QA)

Heres how to analyze the situation and decide what to do 1 Consider Risk and Expected Return Your fr... View the full answer