The process by which management evaluates long-term investment decisions involving long-term operational assets is called capital investment analysis.
Companies and governmental organisations use capital investment analysis as a budgeting technique to evaluate the prospective profitability of a long-term investment. Long-term investments, such as those in fixed assets like machinery, equipment, or real estate, are evaluated using capital investment analysis. Finding the choice that can provide the maximum return on investment is the aim of this approach. Businesses may employ a variety of approaches to conduct capital investment analysis, which entails computing the cost of financing, the risk-return of the project, and the expected value of projected future cash flows from the project.
Investments in capital are risky since they entail sizable upfront costs for assets meant to last for many years and that will take a long time to pay for themselves. A capital project must meet a number of fundamental criteria, one of which is an investment return that exceeds the hurdle rate, or needed rate of return, for the firm's shareholders.
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The ability to receive compensation for losses is insurance's most obvious and crucial benefit. An insurance strategy is a policy used to reimburse people and associations for covered misfortunes.
What is an advantage of having insurance?
By shielding you from potential financial losses or liabilities brought on by unanticipated occurrences, insurance primarily serves to preserve your current wealth.
Describe three advantages of term insurance.
The advantages of purchasing term insurance include the ones listed below: Affordable Premium for a Large Guaranteed Sum. Simple to comprehend. Numerous Options for Paying Out Death Benefits.
Insurance serves a number of purposes, including risk sharing, capital formation, economic development, and other things. Insurance has nothing to do with loans.
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Answer:
Fee based fund is the correct answer to the given question
Explanation:
In the fee based funds exercise the money is charged directly to customers.The Fee-Based Funds is imposing the charge of sales to the customer .The Fee-based funds consultants could charge an extra payment of fixed price according to the company policy .
- When the company sells the mutual fund in a fee-based consideration individuals will buy the bond fund Series of the F units.
- All the other options are not related to imposing the sales charge that's why they are incorrect option .
It is True that China and the United States account for the nearly half the increase in the world oil demand.
