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Looking at macroeconomic objectives, money will decrease in real terms due to inflation. Meaning a apple used to cost me $2 but now it costs me $3, your $2 can no longer purchase the apple, therefore the $2 has decreased in value in real terms.
Investing, like purchasing stock will earn you money which may compensate for the decrease of value of money in real terms, but notice that there is a risk of losing money as well. Another example is putting your money into a bank, this is a sort of investment as it gives you a interest rate, but in most cases this rate is lower than the inflation rate.
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What are the advantages and disadvantages associated with Net present value and internal rate of return as methods of investment appraisal?
http://wiki.answers.com/Q/What_are_the_advantages_and_disadvantages_associated_with_Net_present_value_and_internal_rate_of_return_as_methods_of_investment_appraisal pls. what is answer provided for the qustion above
Did China have investment casting?
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