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How do you Calculate a Return on an Investment?
The return on investment formula:ROI=(Gain from Investment - Cost of Investment)/Cost of Investment.
What is the symbol for Western Asset Investment Grade Defined Opportunity Trust Inc in the NYSE?
The symbol for Western Asset Investment Grade Defined Opportunity Trust Inc. in the NYSE is: IGI.
Opportunity cost curve?
Look up Production Possibility Frontier, it is the same thing as a Opportunity Cost Curve.
What is the opportunity cost formula?
opportunity cost of x is equal to y over x. The answer then becomes the slope for the graph.
Why Cost center profit center investment center has its own budget?
To monitor,and make accountable, the management team for that Cost/Profit/Investment center.
What is opportunity cost rate?
The opportunity cost rate is the rate of return you could earn on an alternative investment of similar risk.
Is an investment an implicit cost?
Yes, investment is an implicit cost because it is a firm investing their own money in something that (by definition of an opportunity cost) could have been invested in something else. Investment is the opportunity cost of a firm using their own money, and whether or not the opportunity that the firm invested in is worthwhile is defined by the NROR (the normal rate of return).
What is the difference between a chosen investment and one that is passed up?
opportunity cost
Why is the cost of capital concept so important?
Cost of capital is cost of debt and cost of equity. The concept of cost of capital is important as it depicts the opportunity cost of making a specific investment.
How does opportunity cost enter in to the market of buy decession?
Opportunity Costs are those indirect costs which account for the benefits sacrificed for the funds utilized in a particular decision of investment. In cost analysis, when ascertaining the investment portfolio, The benefits foregone for it needs to be considered so that the relative comparison of the investment avenues in terms of return could be compared and a suitable decision could be made. Thus we see that the buy decisions are influenced by a set od direct and indirect cost considerations, of which the "opportunity cost" is one element.
What is the opportunity cost to a fully employed economy of increasing capital investment?
A fall in consumption
How does opportunity cost enter in to the make or buy decision?
The opportunity cost of a business decision is the value of the potential benefit of the next best opportunity foregone.For example, if I have one £100 to invest, and I can invest in project A, which will return me a profit of £300 or project B, which will return a profit of £150, then I will choose project A. The total cost of the project is:Cost of investment + opportunity cost = £100 + £150 = £250.The £150 in the above formula is the profit I would have made from the next best option for my investment (ie, project B).Since the total cost of my project (£250) is less than my profit (£300), then I have made the right decision. If I had chosen project B for my investment, my total cost would be (100+300=)£400, which is less than the profit of £250, and so I know I have made the wrong decision.In deciding how best to maximise return on capital, one must always consider the opportunity cost of one's investment. It is important to remember that there is always the alternative of simply investing one's money in the bank, earning nominal interest (say 5%). If the expected returns are not above this rate, then total cost (including opportunity cost) will exceed the return on investment and so the potential investment should not be made.
What is the concept of opportunity cost reference to investor?
The opportunity cost with reference to an investor would be the income he wud have earned had he used(invested) his money for some oder purpose. e.g. opp. cost for investing in mutual fund can be the interest of the amt. of investment offered by a bank, (or any other kind of interest, dividend or return) which the investor had to forgo to receive benefit from his investment.
What is opportunity cost and opportunity benefit?
Opportunity cost is the cost that an opportunity presents. The opportunity benefit is the benefit of the opportunity that is being presented.
How do you Calculate a Return on an Investment?
The return on investment formula:ROI=(Gain from Investment - Cost of Investment)/Cost of Investment.
Why do you use the overall cost of capital for investment decisions even when only one source of capital will be used?
The overall cost of capital is the cost of the opportunity to make a certain investment. A financial manager uses the overall cost of capital as a way to gauge the rate of return of one investment over another.
What is the biggest mining investment opportunity of this decade?
software
