Why are cash and time critical elements in investment decisions?
Answer to relevant QuestionsWhy is time value more important in gauging capital decisions than the traditional accounting methods? You have a choice between receiving (1) A $50,000 payment today, (2) A $7,500 annuity for the next 10 years and a lump-sum amount of $20,000 at the end of the10th year. If money is worth 10%, which option is the most ...If you invest $10,000 at 8%, how much will your investment be worth at the end of the following time periods?a) 5 yearsb) 10 yearsc) 15 yearsWhat does the net present value measure? With the following information, calculate the project’s (1) Profit for the year, (2) Cash flow: operating profit ($200,000); capital cost allowance ($50,000); other expenses ($100,000); and income tax rate (40%).
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