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You have to look at the situation in detail.

For things that depreciate like cars or electronics, there is little investment value. But the financing can be very painful if done wrong.

Whereas with a mutual fund or savings plan, there is no financing, but the you need to know about how much your going to receive from that investment.

Now in the case of a house, things get tricky. Most people don't know, but if you take out a 100K mortgage at a low interest rate (6.5 %) over 30 years you will still end up paying over 350K back to the bank by the time it is all over! (Including escrow). For that reason, you need to be sure that you going to get the that much value out the investment when you start to look at the financing.

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14y ago

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What is tax equity financing?

Tax equity financing has been a reliable source of funding renewable energy projects for the past decade. Tax equity financing is renewable energy financing structure that permits investors to efficiently and economically utilize federal tax benefits generated by the investment available in renewable energy projects. See: w_wTaxEquityFinancing_com for more complete answer.


What is the difference between interest only financing and conventional financing?

The difference between interest only financing and conventional financing is that you are able to make money without any investment on an interest only account only by depositing a maximum amount in an account which you leave for a set period of time where interest will accumulate. Conventional banking is used for more day to day banking purposes.


How does having more equity following the purchase of a home indicate that the purchaser has made a wise investment decision?

Having more equity after buying a home means the purchaser has paid off more of the loan and owns a larger portion of the property. This indicates a wise investment decision because it shows the purchaser has built wealth through property ownership and has a valuable asset that can appreciate over time.


Which is more costly long term financing or short term financing?

Both can be good and bad. This question is too broad. Overall short term financing is more expensive however it can be a lifeline and save a business. Do some more search online for business credit and business financing.


In general how would each of the following factors affect the investment decision and how should each be treated 1. The expected life of the existing machine decreases. 2. the WACC is not constan?

If the expected life of the existing machine decreases, it may prompt a reevaluation of the investment decision, as shorter lifespans can lead to increased depreciation and reduced returns. This should be treated as a risk factor, potentially leading to a more conservative approach in evaluating new investments or replacement options. If the Weighted Average Cost of Capital (WACC) is not constant, it implies fluctuating costs of financing that can affect the net present value (NPV) and overall attractiveness of an investment. This variability should be factored into the investment analysis, possibly requiring sensitivity analysis to assess how changes in WACC impact projected returns.

Related Questions

Where can I find information on how to get financing for a business acquisition?

Here's a company that will provide financing for a business acquisition: http://www.globaleasing.com/financing-acquisition.html A local bank can help you with financing options for a business investment. Contact a loan officer for more information.


Let Someone Else Decide Where To Invest Money?

Picking an investment company to put your money in is a very important decision. You are putting not only your money into an investment, but your faith in the investment as well. Consult with an investment broker before you make any decision on where to put money. They will show you the past investments of the company and the rise and fall of the stock amounts. Find a company with a good history and one that has a bright future so that you do not lose more money than you invest.


What is tax equity financing?

Tax equity financing has been a reliable source of funding renewable energy projects for the past decade. Tax equity financing is renewable energy financing structure that permits investors to efficiently and economically utilize federal tax benefits generated by the investment available in renewable energy projects. See: w_wTaxEquityFinancing_com for more complete answer.


Where can I learn more at financing for a mortgage?

You are very wise to do some research on this important subject that will be the more important purchase you will ever make. Go to www.bankrate.com.


Why investment is important in an economy?

Allow businesses to raise capital to sustain and grow. The more businesses there are, the more competition, the more competition, the more innovation and price efficiency (as companies compete for customers' money).


What is the difference between interest only financing and conventional financing?

The difference between interest only financing and conventional financing is that you are able to make money without any investment on an interest only account only by depositing a maximum amount in an account which you leave for a set period of time where interest will accumulate. Conventional banking is used for more day to day banking purposes.


What is the effect of the source of finance in public and private institution?

The source of finance has a bearing on the costs incurred by that company. As you know, most institutions have three potential sources of funds; Debt Financing, Equity Financing and Grants or Subsidies from Government. The later of the three is quite rare and so is normally ignored. In making a choice between debt and equity companies must weigh the costs against the benefits. Equity is generally considered to be cheaper than debt financing, for a number of reasons, including the timing of the cash outflows to the source of funds. The DuPont equation however, brings to light the many benefits of leveraging (i.e. the use of debt financing) to companies and the equity shareholders. In brief, the DuPont Equation points out that an entrepreneur (or shareholder) can earn excess returns by leveraging his investment portfolio, provided that the return earned from that portfolio is greater than the cost of the debt used. The excess return is the portion of the return earned on borrowed dollars, that isn't paid back to the lender as interest. That's all I can give you for now, but I encourage you to read more. There is quite a substantial amount of literature on this subject given that it is one of the three most important decisions in Finance. These are, the investment decision, the dividend decision and (your question) the financing decision.


Financing Bariatric Surgery An Investment In Your Future?

Bariatric surgery can cost anywhere from $20,000 to $35,000, and not all insurance companies will cover the surgery. Most surgeons offer a financing option with a low interest rate. Although this is a lot of money to most people, it is an investment in your future and your health. Obesity can lead to heart disease, diabetes and other conditions. These can be expensive to treat, even if you have insurance. While it's unfair, patients often earn more money after bariatric surgery than they did before the surgery. If you are considering financing bariatric surgery, think of it as an investment in your physical and emotional health.


What is office financing, and where can I find out more?

Office financing is when you finance something for your office. It is a way to get more money, and to help out your business. You can go to your bank to learn more about office financing.


Why is tourism so important to Malaysia?

Malaysia is boosting its tourism basically because to invite more investment for the upliftment of the country. If there are many more tourists, it can open doors to more business and more investment from outside the country.


Financing / Credit / LoanWe offer financial loans and investment loans for all individuals who have special business needs. For more information contact us at via eSubmit your inquiryThank you?

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What is the matching principle of working capital financing?

An all equity capital structure would be the most conservative type of working capital financing plan approach. The more long-term financing used the more conservative the financing plan, and equity is permanent financing.