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Question: Compare investment alternatives

Two acquaintances have approached you about investing in business activities in which each is involved. Nateisha is seeking $2,800 and Tian needs $3,700. One year from now your original investment will be returned, along with $280 income from Nateisha or $325 income from Tian. You can make only one investment.

Required: a1. Compute the ROI of Nateisha and Tian.

a.2 Which investment would you prefer?

Nateisha

Tian

b. What other factors should you consider before making either investment?

Fluctuation

Risk

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92579240

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