Q: Which is the accounting rate of return using the average investment?
A: Summary of the relevant information as provided in the question : cost of investment = £…
Q: What is investment timing option?
A: Option with reference to investment or project refers a significant option that can affect the…
Q: How can we determine which projects are pure investments?
A: A pure investment project refers to an investment wherein the firm borrows money from the project…
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: What is financing feedback?
A: Introduction: Financing feedback is generated when interest expenditure is overestimated, reducing…
Q: What are the risks of investing in an ESOP?
A: ESOP stands for Employee Stock Ownership Plan. It is a plan that gives an ownership interest in the…
Q: Describe the technology that is commonly practiced in financial investment?
A: The question is based on the concept of FinTech methods used in taking investment decisions in the…
Q: What is project financing? What are its advantages and disadvantages?
A: Project financing: It is a type of subsidizing for the most part foundation overwhelming,…
Q: Explain the types of investment risks with practical examples.
A: Investment risk - Investment risk is the probability of incurring losses from an investment made in…
Q: Why is it necessary to determine how long you can expect to reap benefit from the investment?
A: Individuals as well as firms often make investment and specify the time limit for which this…
Q: Which one of the following is an example of conventional form of investment?
A: Conventional investment categories includes trading investment options.
Q: What is reinvestment rate risk?
A: The reinvestment rate risk is the potential decline in the interest income that tends to be a result…
Q: Do the financial statements provide the basis for future investment analysis?
A: Yes, financial statements are helpful in providing the base for the analysis of investment in the…
Q: What is financial risk?
A: Risk refers to the undesired consequences arises due to the uncertainty. In other words, risk refers…
Q: How behavorial bias affect investment behavior?
A: Behavioral bias is the belief by the investors that unknowingly affects the investors investment…
Q: What is risk, and how does it affect decisions about investment?
A: Risk and return are related to each other while making investment.
Q: What is investor-supplied capital?
A: A business might make a return on its invested capital that surpasses the cost of that capital.
Q: Explain the problem of a capital-investment?
A: For the financing of capital investment, generally, the company considers operating cash flow of its…
Q: Factors affecting investment decisions
A: Introduction: The Investment decision is the decision taken by shareholders or top-level management…
Q: Determine whether an investment is visible, which factors should be considered?
A: In terms of finance, the term feasibility of a project means to check if the project is economically…
Q: What kind of investment is considered to be risk-free?
A: A risk-free investment is an investment that has a minimum or no fluctuation from the expected…
Q: What is the initial investment plus interest?
A: The total of initial investment and interest will give the total value or worth of the investment…
Q: Describe the Investment-Pool Concept?
A: Investment pools are institutional elements that are pooled speculation structures, with the…
Q: Explain the term Value investing strategies?
A: SOLUTION:- Benjamin Graham, an American economist, investor, and professor, pioneered a new method…
Q: In order to determine whether an investment is visible, what factors should be considered?
A: For the evaluation of a task, no fixed steps that have to be taken. Numerous things should be…
Q: What is financial asset market?
A: Financial assets generally include bonds, stocks, mutual funds, cash, deposits with bank etc. These…
Q: What is the relationship of risk to the investment?
A: There is a direct relationship between risk and return in investment decision making. It means…
Q: When is a project is said to be a net investment?
A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…
Q: What is the main determinant of the level of investment?
A: An investment is simply a financial instrument formed with the goal of allowing money to grow. One,…
Q: What is the risk in the context of financial decision making and performance?
A: Financial decision making: Financial decision making denotes to decision making concerning financial…
Q: How do you make an investment decision based on the IRR?
A: IRR is the return actually earned by the investor and discount rate is the return which the investor…
Q: What is investment strategy?
A: Investment strategies are generally used by the investors in order to protect themselves from any…
Q: What is investor-supplied operating capital?
A: Investor-supplied operating capital is the capital that is provided by the equity shareholders and…
Q: What it the profitability index for investment project O?
A: Profitability Index = Present Value of cash flows / Initial investment =$102,500 / $95,000 =1.079
Q: What is the key output of a financial plan?
A: A financial plan refers to the broader evaluation of an individual current and financial future…
Q: what is the difference between investing and financing activities?
A: Cash flow statement include cash flows resulting from operating activities, investing activities and…
Q: what are the benefits/risks of financial leverage?
A: Financial leverage is a condition wherein a company raises funds through the issue of additional…
Q: What is return on investment?
A: Return on investment is a financial ratio which is measured as net income divided by the cost of…
Q: Is the investment risk concerned with the range of possible outcomes from aninvestment?
A: For a business, there are many types of risks associated with it. Some of the risks are credit risk,…
Q: Illustrate how risk related to investment
A: There is a direct relationship between risk and return in investment decision making. It means…
Q: Explain the term Motivations for Investing and types of investments?
A: Making investments in securities is a good method to mobilize the savings and earn a regular source…
Q: HOW TO KNOW THE RATIO OFCAPITAL INVESTMENT?
A: Ratio of capital investment is the ratio of net operating profit to total capital investment.
Q: What is e Direct Investment?
A: Direct Investment is an important concept in the world of finance. Direct investment is also…
Q: What does “investment risk” mean?
A: Risk is referred as uncertainty or loss. Financial risk is referred as the variability of actual…
Q: What are investment activities? Give some examples?
A: Statement of cash flow: It refers to a financial statement that shows all the cash payments and…
Q: Define the term elements associated with investment activities?
A: In a simple language investment is like investing money to get a return out of it or to get more…
What are the benefits and corresponding risks of Financial Investment?
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