Question
List 3 factors that should be considered when determining interest rate/yield when deciding on whether to invest in a project or service.give brief explanation &
List 3 factors that should be considered when determining interest rate/yield when deciding on whether to invest in a project or service.give brief explanation & provide example as to why these factors should be consideredÂ
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When determining the interest rate or yield for investing in a project or service several factors should be considered Here are three important factors along with brief explanations and examples illustrating why they should be taken into account 1 Risk The level of risk associated with the investment is a crucial factor in determining the interest rate or yield Higherrisk investments typically require a higher rate of return to compensate for the increased uncertainty and potential loss The risk can be influenced by factors such as the industry market conditions economic stability and the specific project or service being considered For example investing in a startup company in a volatile industry may carry higher risk compared to investing in a wellestablished company in a stable industry 2 Time Horizon The time period for which the investment will be held is another important factor ...
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Accounting Principles Part 2
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
6th Canadian edition Volume 1
1118306791, 978-1118306796
