Suppose you know that an investment will earn a positive return in the future. Why is it

Question:

Suppose you know that an investment will earn a positive return in the future. Why is it important to know the present value of the investment?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Microeconomics

ISBN: 978-1259163531

1st edition

Authors: Dean Karlan, Jonathan Morduch

See More Books

Question Posted: Sep 21, 2024 06:02 AM

See More Questions

How can we define tectonic stress?
If the price of Iguana Handbags Inc. stock is $43, its required return is 20% and the last dividend was $3, what is its dividend growth rate? a) 17.4% b) 10% c) 12.2% d) 13% e) 11.7%
Identify the errors in the following bankreconciliation: RAKESTRAW CO. Bank Reconciliation For the Month Ended April 30, 2010 Cash balance according to bank statement Add outstanding checks: $11,320...
Suppose you know that an investment will earn a positive return in the future. Why is it important to know the present value of the investment?
1. The market equilibrium is shown by the intersection of the ____ curve and the ____ curve. 2. Excess demand occurs when the price is (less/greater) than the equilibrium price; excess supply occurs...
For Johnson and Johnson, I need help determining the PV and NPV based off the end of Q1 of 2022 and Q1 of 2021 for the same company. Below are the tables. Thanks! Time Value of Money - Present Value...
You are considering taking out a two-year loan of $1,000 from a bank, on which you can pay either compound yearly interest of 1 percent or a flat rate of 2 percent for the whole two-year period....
Suppose you are selling a piece of furniture to a friend who cant afford to pay you upfront but offers to pay you in monthly installments for the next year. What information do you need to calculate...
Blood plasma flows from a bag through a tube into a patients vein, where the blood pressure is 12 mmHg. The specific gravity of blood plasma at 37 o C is 1.03. What is the minimum elevation the bag...
What is meant by organisational theory ?
What is meant by decentralisation of authority ?
Briefly explain the qualities of an able supervisor
Define policy making?
Define co-ordination?
For the area indicated, determine the orientation of the principal axes at the origin and the corresponding values of the moments of inertia. Area of Prob. 9.72 6 in. 6 ki. -9 in- 9 in. 4.5 in. 45 in.
Gopher, Inc. developing its upcoming budgeted Costs of Quality (COQ) with the following information: Expense Item Budget Raw Materials Inspection $ 15,000 EPA Fine 200,000 Design Engineering 15,000...
How will growing Internet access affect the number of film actors and musicians who have active fan clubs?
Consumers know that some fraction x of all new cars produced and sold in the market are defective. The defective ones cannot be identified except by those who own them. Cars do not depreciate with...
State whether the following are true or false, and briefly explain why: a. Companies spend billions of dollars advertising their products on network TV primarily because the texts of their...
Required information [The following information applies to the questions displayed below.] Shadee Corp. expects to sell 550 sun visors in May and 440 in June. Each visor sells for $18. Shadee's...
Brown Freightway provides freight service. The company's balance sheet includes Land, Buildings, and Motor-carrier equipment. Brown Freightway uses a separate accumulated depreciation account for...
Print Works company has collected actual results for the current month as follows: Actual amounts: Units produced 5,600 Direct materials purchased and used (7,000 lbs.) $49,000 Budgeted production...

Suppose you know that an investment will earn a positive return in the future. Why is it

Question:

Step by Step Answer:

Its importantto know the present value of the investment so that you can comp...View the full answer

Microeconomics

Students also viewed these Economics questions