Question

You are thinking about investing $ 5,058 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 $ 5,787 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 9 % for the year. What should you do?

Answer #1

You are thinking about investing
$4,892
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
$5,761
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
8 %
for the year. What should you do?
The present value of the return...

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