1. Why does money have a time value? In other words, why, conceptually, is a dollar today worth more than a dollar tomorrow?
2. When we talk about interest rates, this is sometimes referred to as a hurdle rate or the opportunity cost(s) for the various uses of capital. What exactly is meant by this? Why do interest rates serve as a barometer for the various potential uses of an investors capital?
3. Suppose you won a $2 Million (after taxes) jackpot in a state lottery. Assume for the purposes of discussion, that there are no fees associated with the transfer of these funds into your own personal financial institutions, that the funds are free of any contingencies, and that you can utilize them immediately as you see fit. You look out into the marketplace for potential opportunities, where you, as the Savvy Investor, can grow your newly-acquired capital. What sorts of questions are you going to ask? Where would you look for opportunity? What kind of information would you need to make the soundest judgement? Once you have conducted your analyses, how would you ultimately come to a decision on how to deploy your capital?