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faust18 [17]
3 years ago
9

You are thinking about investing $ 4 comma 650 in your​ friend's landscaping business. Even though you know the investment is ri

sky and you​ can't be​ sure, you expect your investment to be worth $ 5 comma 637 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?
Business
1 answer:
Zina [86]3 years ago
6 0

Explanation:

The computation of present value of the return is shown below:-

Present value of the return = Expected return ÷ (1 + r)^n

= $5,637 ÷ (1 + 0.09)^n

= $5,637 ÷ (1.09)^1

= $5,637 ÷ 1.09

= $5,171.56

Since as we can see the present value is more than the investing amount. So, the investment can be done in this project.

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3 years ago
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False.

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Communication through business messages should convey the information in the simplest words so that the other party can easily understand what is being said. It also needs to be brief and to the point.

Using high level diction liberally in business communication leads to unclear messaging. The reader may not know the meaning of the words so the aim of communication will be defeated.

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2 years ago
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3 0
3 years ago
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Risk that are caused by the response to the another risk is known as secondary risk. The first option is correct.

<h3>What are risk?</h3>

Risk refers to the possibility of the danger or harm. For example there is risk involved to change the career. The risk taken can lead to any outcome it can be positive or negative.

There are various kinds of risk one of those kind is the secondary risk in which the risk is taken as a result of the previous actions taken to deal with the situation.

Thus the correct option is Secondary risk.

Learn more about residual risk here:

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2 years ago
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