Question: Why are cash and time critical elements in investment decisions
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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