You are thinking about investing $4,819 in your friend's landscaping business. Even though you kn is risky and you can't be sure, you expect your investment to be worth $5,712 next year. You notice for one-year Treasury bills is 1%. However, you feel that other investments of equal risk to your frier business offer an expected return of 9% for the year. What should you do? The present value of the return is $ (Round to the nearest cent.)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Question
You are thinking about investing $4,819 in your friend's landscaping business. Even though you kn
is risky and you can't be sure, you expect your investment to be worth $5,712 next year. You notice
for one-year Treasury bills is 1%. However, you feel that other investments of equal risk to your frier
business offer an expected return of 9% for the year. What should you do?
The present value of the return is $
(Round to the nearest cent.)
Transcribed Image Text:You are thinking about investing $4,819 in your friend's landscaping business. Even though you kn is risky and you can't be sure, you expect your investment to be worth $5,712 next year. You notice for one-year Treasury bills is 1%. However, you feel that other investments of equal risk to your frier business offer an expected return of 9% for the year. What should you do? The present value of the return is $ (Round to the nearest cent.)
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