Two acquaintances have approached you about investing in, Accounting Basics

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Two acquaintances have approached you about investing in

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

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