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: Nov 27, 2015 02:17 AM

See More Questions

Suppose you know that a company's stock currently sells for $47 per share and the required return on the stock is 11 percent. You also know that the total return on the stock is evenly divided...
Why is it important to know the ratings of the insurance company?
Why is it important to end a negative message on a positive note?
The read-write head for a hand-held music player has a surface area of 0.04 mm. The head is held 0.04 m above the disk, which is rotating at a constant rate of 1800 rpm. Determine the torque T that...
In Problem 12.9 on page 424, an agent for a real estate company wanted to predict the monthly rent for one bedroom apartments, based on the size of an apartment. The data are stored in...
(a) What is the potential difference between points a and d in Fig. 19-45 (same circuit as Fig. 19-13, Example 19-8), (b) What is the terminal voltage of each battery? 30 r= 62= 45 40 ww.gl - 80...
Describe the two basic types of pension plans. AppendixLO1
A saturated-vapor mixture of maleic anhydride and benzoic acid containing 10 mol% acid is a by-product of the manufacture of phthalic anhydride. This mixture is distilled continuously at 13.3 kPa to...
Hello, can someone assist me with this problem? Thank you, Determine the amount of (1) taxable dividend, (2) nontaxable distribution, and (3) capital gain, for the distributions made in each of the...
Jane is considering investing in three different stocks or creating three distinct two- stock portfolios. Jane considers herself to be a rather conservative investor. She is able to obtain forecasted...
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...
In Regardless of Your Major: Conflicting Objectives Lead to Problems in Managing a Firm's Working Capital on page 578, we learned that the objectives of a firm's sales force and the goal of...
6.10 Long Div. and Comp Square Calculus - No Calculator Find the indefinite integral. 1. S 4x-34x+56x-21 4x-2 dx Mastery Check #2 1 dx 2. Sx-4x+5x x-4x+5 S S Name: Sienna Nono Date: 3-1-24 Period:...
How well are oncology firms leveraging digital technology to gain and sustain competitive advantage?
Axel and Brooklyn have agreed to buy a new vehicle. Brooklyn mentions that she is looking forward to getting a new SUV, so they have room for their dogs and kids. Axel mentions he thought they were...
Discuss how technology and human resources are needed to operate this facility in this behind the scenes look at this retailing giant. Support your opinion with research and/or key concepts covered...
4.2 At a given instant, a spacecraft is 500 km above the earth, with a right ascension of 300 and a declination of -20 relative to the geocentric equatorial frame. Its velocity is 10 km/s directly...
For the distillation performance problem in Section 22. 2, assume that scale-down occurs while maintaining constant boil-up rate. Determine the conditions in the reboiler, column, and condenser for...
What can you do to reduce hunger where you live? To reduce hunger globally?
Which type of credit card is most convenient to use?
Assume the United States is an importer of televisions and there are no trade restrictions. U.S. consumers buy 1 million televisions per year, of which 400,000 are produced domestically and 600,000...
Consider a small country that exports steel. Suppose that a pro-trade government decides to subsidize the export of steel by paying a certain amount for each ton sold abroad. How does this export...
Give an example of a negative externality and an example of a positive externality.
Due to the relationship of financial statements, the statement of stockholders' equity links the income statement to the balance sheet. True or False?
Troy Engines, Limited, manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An...
Trey is single and has no qualifying child. His adjusted gross income is $12,355. In order to claim the Earned Income Tax Credit, he must meet which of the following requirements? He cannot be the...

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

Question:

Step by Step Answer:

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

Microeconomics

Students also viewed these Economics questions