Yogurt business that his terms were too risky

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Reference no: EM132007979

You told your friend with the yogurt business that his terms were too risky. You think an appropriate discount rate for this venture is 20% and you want a return in ONE year. In exchange for a $50,000 investment today, your friend agrees to pay you $57,500 in one year. Should you take your friend's offer? Why or why not? (2 points) (Note: there are different ways you could answer this but thecorrect ones involve some use of the terms we discussed in class - PV, FV, IRR etc.). Show your work.

Reference no: EM132007979

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