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Calculate the present value of the return

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Question - You are thinking about investing $5,144 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 $5,750 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 11% for the year. What should you do? Calculate the present value of the return?

Reference no: EM132654010

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