When considering multiple possible investments, why are rates of return preferable than monetary returns

Q: - explain what would you take to compare the worthness of two different fianancial investments? how…

A: Solution- Meaning of economic Investment A  Financial Investment is AN plus or instrument purchased…

Q: Explain several ways of defining the concept of rate of return on investment?

A: Return on investment is the tool that can be used to measure the performance of the companies.  The…

Q: Are there sources of value in an investment? what they are? and give an example for both?

A: Yes, there are various sources of value in an investment. An investment is a stock or a bond. People…

Q: Using a payback period rule tends to bias investors toward Select one: a. riskier investments. b.…

A: Payback period: This method is used to calculate how many years a project will take to recover its…

Q: The Billy Joe Company has a choice of two different investments that it can make today. The…

A: Year Proect A Proect B 0 -250000 -200000 1 60000 50000 2 60000 50000 3 60000 50000 4 60000…

Q: Explain Simple versus Nonsimple Investments?

A: The question is based on the concept of different way of investments.

Q: What would you choose? Other investment assets or Alternatives to fixed income and equities

A: Allocation of the investment is a much wider and troublesome task. the proper allocation may lead to…

Q: what sense is a firm's WACC also the rate of return that should be earned on its investments?

A: Step 1   The WACC of a company is the overall needed return, which is the discount rate that should…

Q: The following is a concise explanation of the primary investment risk characteristics that investors…

A: Introduction : Investing assessment and appraisal is crucial for investors because it is a kind of…

Q: An investment computed at compound interest is always a better option than an investment computed at…

A: Simple interest is based on the principal amount of an investment.   Compound interest is based on…

Q: What are the best short-term and long-term investment strategies going forward into the future?

A: Short term investment strategy – Those investment that are usually traded for upto a span of 3 years…

Q: Explain Decision Rule for Nonsimple Investments?

A: In a simple investment, cash flows change sign only one time. For example, negative cash flow in the…

Q: What serious drawbacks do the much-used payback method of investmentscreening have?

A: The payback period alludes to what extent it takes for a speculator to hit breakeven to recoup the…

Q: Suppose you know that an investment will earna positive return in the future. Why is it important to…

A: The investment may provide a positive return in the future, but the worth of receiving it in future…

Q: Give an example of a liquid investment and an illiquid investment. Discuss why you consider each of…

A: In finance, the term investment represents a financial technique to allocate surplus funds into an…

Q: if diversification is desired, would you seek investments with high correlation?

A: The question is based on the concept of risk in investment and diversification effect. The risk…

Q: What strategies are available to eliminate timing problems in investments? Explain Briefly

A: Introduction to Investments  Investment is referred to as the asset which is created with the…

Q: Both simple and compound interest represent the rate of return (ROR) on investments Select one: True…

A: Formula for simple interest = Principal x Interest x Time Formula for compound interest = Principal…

Q: What role does the correlation what role does the correlation of two assets play in computation of…

A: The answer and the explanation can be seen below:

Q: Why may the net-present-value and internal-rate-ofreturn methods yield different rankings for…

A:

Q: Which one of the following methods of analysis is most appropriate to use when two investments are…

A: Capital budgeting techniques such as internal rate of return, net present value method, average…

Q: The interest rate is the IRR for the mixed investment. True or false?

A: Project Balance (PB) is the amount of investment that is made into a project at any given period of…

Q: How can we invest in two assets with similar return characteristics?

A: An asset is something that provides benefits in the future to its owner. There are two types of…

Q: Which among the following is a better investment products, bonds, stocks or investment funds?…

A: Investment fundIt is the pool of capital that the number of investors makes payment into, which is…

Q: Differentiate between Simple and Nonsimple Investments?

A: Simple investment: Simple investment is a type of investment in which the investment sign will…

Q: An advantage of the internal rate of return method is that a.it considers the time value of money.…

A: Capital budgeting is the process of selecting and choosing best alternatives among the available…

Q: A realized return is the rate of return actually earned on an investment. Group of answer choices…

A: Return: Return is defined as the money attained or lost on an investment through certain time…

Q: In choosing where to invest, return and risk for an investment must be compared. It is not…

A: Return and risk are the different sides of the same coin. Both are directly related to each other.…

Q: Identify two problems of comparing investments using the payback time.

A: This question explains about  investments using the payback time.

Q: When comparing the performance of two investment alternatives, which characteristics of investments…

A: For comparison any investment alternative main thing required for Cashflow and certainty of cash and…

Q: Why are the net-present-value and internal-rate-of-return approaches ranked differently for…

A: This question explains about  the net-present-value and internal-rate-of-return approaches ranked…

Q: What would you choose? OTHER INVESTMENT ASSETS or ALTERNATIVES TO FIXED INCOME AND EQUITIES

A: Portfolio investments: Portfolio investment is the type of investment in which various types of…

Q: onsider the following tw

A: A. Standard deviations and coefficient of variation can be computed as follows :

Q: Would you prefer more frequent compounding for your investments? Why or why not?

A: Compounding: In investment accounting, compounding refers to the method through which interest is…

Q: How can we invest in two assets with dissimilar return characteristics?

A: Diversification is one of the tactics to keep in mind while forming a portfolio. Investing all the…

Q: 1.What is the relationship between an investment’s risk and its return? Please provide examples if…

A: Note:  As per our policy, we only answer one question, when more than one question is posted. The…

Q: The expected rate of return of an investment ________. a. equals one of the possible rates of…

A: Expected or average return is the return calculated by obtaining the mean value of a distribution.…

Q: Would you expect positive covariances of returns between different types of assets such as returns…

A: Covariance is the measure of the degree to which two variables move together relative to their…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.