Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall

Exercise 17

Compare investment alternatives Two acquaintances have approached you about investing in business activities in which each is involved. Velterine is seeking $4,000 and Francis needs $5,000. One year from now your original investment will be returned, along with $740 income from Velterine or $850 income from Francis. You can make only one investment.
Required:
a. Which investment would you prefer? Why? Round your percentage answer to two decimal places.
b. What other factors should you consider before making either investment?