Choosing when to start a project is related to the investment timing decision.
<h3>Is an investment's timing crucial?</h3>
The following are some advantages of market timing strategy:
- Market timing is utilized to increase earnings and counteract the dangers involved with small gains.
- When it comes to investments, the basic risk-return trade off holds true: the greater the risk, the greater the gain.
<h3>What does the term "investment decision" mean?</h3>
The choice and acquisition of the long-term and short-term assets in which funds will be invested by the organization are referred to as investment decisions.
<h3>What is a timing option for investments?</h3>
The investment-timing option, which is the choice to delay rather than immediately adopt or reject a capital budgeting project, can dramatically boost a project's value when interest rates are unpredictable.
<h3>What is an example of an investment decision?</h3>
- Decisions on investments can be made for the long- or short-term.
- A capital budgeting decision is another name for a long-term investment choice. Long-term financial commitments are necessary.
- A new machine purchase to replace an older one, the purchase of a new fixed asset, the establishment of a new branch, etc. are a few examples.
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Answer:
$(94,179)
Explanation:
Particulars Year 0 Year 1 Year 2
Cash flows ($1,500,000) A$1,000,000 A$2,000,000
DCF 14% 1 0.8772 0.7695
Present Values 1500,000 A$877,200 A$ 1,538,935
Conversion 1 0.55 0.60
P V in US$ (1,500,000) 482,460 923,361
Therefore Net Present Value = 482,460 +923,361 - 1,500,000 = $(94,179)
Answer:
The perception of unfairness
Explanation:
The perception of unfairness
the feeling of unfairness come when one feel unjust and unequal. It is a feeling of inequality or partiality toward one.
In the above situation Jane feel unfairness due to the fact that in-spite of being at same level with the other colleagues and showing same performance, company decide to suspend her.
Answer:
fair value is $761
Explanation:
Given data
bond value = $1000
rater r = 12 %
rate R = 16%
time = 20 year
to find out
a fair price
solution
we know compounding period in year is = 4
so time 20 x 4 = 80
fair Price = 
[(Quarterly Coupon) / (1 + R/400)^t] +bond value / (1 + R /400)^t
here
Quarterly Coupon = 12 × 1000/400 = 30
so
fair Price = [(30) / (1 + 16/400)^k] + 1000 / (1+16/400)^80
solve it we get
fair value is $761
