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What would happen to the amount of economic investment made today if firms expected the future returns to such investment to be very low?
Wiki User
∙ 10y ago
1. What if firms expected future returns to be very high?
Wiki User
∙ 12y ago
Wiki User
∙ 10y agoThe amount of investment today would as well be very low because peope do not want to lose money. Also, investment wants to be growing not just staying constant.
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What are the two key parameters used to make investment decision?
The two main parameters are: * Returns - Amount of returns we can expect on the investment * Safety/Risk - How risky the investment is. Generally risk and returns are directly proportional. Higher the risk on investment, higher would be the return on investment.
What does it mean when you say it is a risk-reward payoff when considering capital budget?
A ratio used by many investors to compare the expected returns of an investment to the amount of risk undertaken to capture these returns. This ratio is calculated mathematically by dividing the amount he or she stands to lose if the price moves in the unexpected direction (i.e. the risk) by the amount of profit the trader expects to have made when the position is closed (i.e. the reward).
According to economic intelligence unit maximum amount of foreign direct investment is received by?
china
What kind of returns are Dubai real estate investments fetching currently I am considering making a home investment here.?
Investment in dubai real estate currently is offering a great path of capital appreciation and returns and is active with significant amount of fund inflows. Your decision to make an investment here would be worth it.
What is a pv function?
The PV function returns the present value of an investment, which is the total amount that a series of future payments is worth presently.
How can I calculate the expected return on an investment?
To calculate the return on an investment you will fist write down the amount of your total investment including fees and any expenses. Next, write down your loss and finally calculate the return on investment by dividing the profit by total investment. www.moneychimp.com offers a compound interest calculator for your convenience.
The amount of an original investment is called?
the amount of an original investment is called
What is pv in excell?
The PV function is a financial function. It is used to return the present value of an investment based on an interest rate and a constant payment schedule. The syntax is a follows: PV( rate, number_payments, payment, [FV], [Type] ) Rate is the interest rate for the investment. Number_payments is the number of payments for the annuity. Payment is the amount of the payment made each period. If it is omitted, you have to enter a FV value. FV is optional. It is the future value of the payments. If it is omitted, it is assumed to be 0. Type is optional. It indicates when the payments are due. Type can be one of the following values: 0 for when payments are due at the end of the period, which is the default. 1 for when payments are due at the start of the period. If the Type parameter is left out, the PV function sets the Type value to 0.
Is return of investment an income acct?
Yes the amount would be a taxable income amount after your return of investment amounts exceed your cost basis in the investment.
How do you calculate return on an investment?
To calculate ROI, the benefit (or return of money or income gained) of an investment is divided by the cost of the investment. ROI is usually shown as a percentage. This formula can also be used to suit a number of different situations. Here is the formula for ROI: (Income from Investment - Cost of Investment) / Total Cost of Investment = ROI
What statement best defines the term principal?
The principal is the original sum of money invested or loaned, on which interest is calculated. It is the base amount used to determine future interest payments or investment returns.
How much interest would you earn on 122 million pounds?
The amount of interest you would earn on 122 million pounds will usually vary between 1 and 5 percent. The actual amount varies greatly based on the type of investment and their returns.
