Investment analysts look at investment over a period of time because:

1. By looking into the future which includes their assumptions they can see what the economic value to the Company can be
2. Investment profiles provide an opportunity for analysts and marketers to make assumptions and consider whether the assumptions are realistic
3. Most major investment take time to unfold and generate the value that supports a decision to invest
4. Marketers can compete with financial analysts for attention
5. A,B and C

Bringing Future Value to the present is called discounting

1. True
2. False

When a manager calculates Payback. They are:

1. Determining how to get even with a competitor
2. Calculating the market share that allows them to Break Even
3. Measuring the amount of time which elapse before their original investment is recovered
4. Estimating the number of units which need to be sold to cover costs

The key result in an investment for any company is for the return on investment to be greater than the Companys Cost of Capital

1. True
2. False

Bringing Future Value to the present requires an analyst to use:

1. The prevailing bank rate of interest
2. The inflation rate
3. The Cost of Capital of the Company
4. The dividend rate paid to investors