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You have invested in a business that proudly reports that it is profitable. Your investment of $5,200 has produced a profit of $300. The managers think that if you leave your $5,200 invested with? them, they should be able to generate $300 per year in profits for you in perpetuity. Evaluating other investment? opportunities, you note that other? long-term investments of similar risk offer an expected return of 8.1%. Should you remain invested in this? firm?

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Financial Management, Finance

Category:- Financial Management
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