How much more would you earn in the first investment than in the second investment?

Q: What are some of the risks involved in short-term vs. long-term financing ?

A: Financing refers to providing or borrowing capital so as to run the operations of the business…

Q: Explain how a change in interest rates in the economy would beexpected to affect each component of…

A: Introduction:   The interest rate is the percentage value of the total borrowed amount that a…

Q: What's the Impact of Expansion on future financial position?

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: 2. What happens to domestic investment as the real interest rate rises? Explain your answer

A: The Federal Reserve (the Fed) has three goals: maximizing employment, maintaining price stability,…

Q: How long should start up capital last?

A: The ideal duration for your startup capital depends on several factors, and there's no…

Q: How to daily invest and gain?

A: Daily investing and gaining is a risky approach because there's a high risk involved in trading of…

Q: Why are the net present value and the internal rate of return models superior to the payback period…

A: The net present value and internal rate of return techniques are superior to the payback method…

Q: What causes the marginal rate of return to change over time?

A: Introduction: Marginal rate of return can be defined as the return attained or earned by holding a…

Q: What is meant by Short-term financing?

A: Finance refers to the study of money , currency as well as the capital assets.There are basically…

Q: What does the time value of money (TVM) mean?

A: Time value of money (TVM): The TVM is the thought that, due to its conceivable gaining control, cash…

Q: What is growth rate?

A: A growth rate is the percentage increase in the cash flows of the company. A growth can be measured…

Q: write three benefits of the knowledge of the time value of money?

A: Time value of money refers to the worth of a money received today is different from a worth of a…

Q: 2. How might a sudden increase in people's expectations of future real estate prices affect interest…

A: Future real estate prices means expected price or value of real estate assets at a particular point…

Q: What are the advantages/disadvantages of real estate as alternative investments?

A: Following are the advantages and disadvantages of real estate as alternative investments:…

Q: How can we calculate the present worth of actual dollars?

A: Present worth is the current value with a respective rate of return, of a future measure of cash or…

Q: Will the actual realized yields be equal to the expected yields if the interest rates change? If…

A: Actual realized yield refers to the actual return earned by an investor on a bond or other…

Q: What happens to the present value of some fixed dollar amount to be received in the future as time…

A: Present value of some fixed dollar amount  is obtained by discounting the future cash flows using an…

Q: Which you prefer, equity or fixed income?

A: Differences between equity and fixed income: Equity: Corporates issues most of the equity There is…

Q: o you think a person would opt to use the Payback Period Method instead of the Net Present Value or…

A: Given information : . NPV refers to the difference between the sum of the present value of expected…

Q: Why does money have a time value? Does inflation have anything to do with making a ringgit today…

A: As per time value of money concept, the money received today is more worth than the money received…

Q: When considering several possible investments, why are rates of return preferable than monetary…

A: The return, often called a financial return, is the sum of money wasted or earned on an investment…

Q: What should be done to find the equivalent present worth of the actual dollar amount?

A: Present value is the concept of discounting future value to bring it to today’s worth.

Q: Could the current yield exceed the total return?

A: A financial instrument that has a fixed income and also helps a company to raise funds for business…

Q: What happens to a future value is you increased the rate, r? What happens to a present value?

A: When the interest rate increases, the future value of a sum now will increase. This is because the…

Q: What is the definition of “opportunity cost” as it relates to the time value of money? It is the…

A: Opportunity cost is a fundamental concept in economics and finance that refers to the potential…

Q: If you were an Investor, what would you consider in investment:  Net Present Value or Payback…

A: When an investment is made the investor uses various tools to evaluate an investment. The investors…

Q: In general, what effect would a reduction in risk have on “going-in” cap rates? What would this…

A: Capitalization rate is the projected rate of return percentage that a property will make on the…

Q: Do you think investors should practice dollar cost averaging when investing their money? Why or why…

A: Dollar-Cost Averaging: Dollar-Cost averaging is an investment approach that involves investing an…

Q: How will investors get their money back?

A: An investor is a person who is involved in the allocation of capital with an expectation that he or…

Q: When will the prime rate go up and what factors drive it?

A: The prime rate is the best interest rate you can get, and it's influenced by the economy.   In order…

Q: What will an investment or a series of investment be worth after a period of time?

A: The time value of money states that an amount of money is worth more now than it will be in the…

Q: What is the definition of “opportunity cost” as it relates to the time value of money? It is the…

A: Opportunity cost is a fundamental concept in economics and finance that refers to the potential…

Q: Define Present value and future value. If present value and future value are equal what is the rate?…

A: The time value of money is an important concept in finance which states that the money a person…

Q: Advantages and Disadvantages of Saving in Investments

A: Financial investments are made with the future desire of making just financial returns as far as…

Q: Will the actual realized yields be equal to the expected yields if interest rates change? If not,…

A: Yield to maturity is defined as the rate of return that needs to be earned by the holders of the…

Q: When does the present economy studies do or use? a. When interest rate is not given b. When time…

A: Economy studies is defined as the study, which used to provide the framework as well as the ten most…