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Your friend Amber has approached you seeking advice concerning two investment opportunities that she is presently considering. Her classmate Simone has asked her for
Your friend Amber has approached you seeking advice concerning two investment opportunities that she is presently considering. Her classmate Simone has asked her for a loan of $5,000 to help establish a small business; her neighbor Riley would like to borrow $6,000 as a personal loan. One year from now, Amber's original investment will be returned in either case, along with $700 of income from Simone or $780 of income from Riley. Amber can make only one investment. Required: a. 1. Compute the ROI of Simone and Riley. 2. Which investment would you advise Amber to make? b. What other factors should you advise Amber to consider before making either investment? Complete this question by entering your answers in the tabs below. Req A1 Req A2 and B Compute the ROI of Simone and Riley. Note: Round your answers to 2 decimal places. Simone Riley ROI % % < Req A1 Req A2 and B > Show less
Step by Step Solution
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Step: 1
To compute the Return on Investment ROI for both Simone and Riley we use the following formula textR...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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