Investment generate an economic profit, Financial Econometrics

Assignment Help:

An investment will require a $1.0 million cash outlay.  It will generate perpetual net cash inflows of $115,000 a year. Investors could earn 9 percent elsewhere by taking the same risk. Will this investment generate an economic profit?


Related Discussions:- Investment generate an economic profit

Is the investment attractive, During and economic downturn, we can acquire ...

During and economic downturn, we can acquire another company by purchasing its stock for $6 billion. The company is earning $700 million a year, which is available for dividends, a

Financial Analyst, What is the relationship between overpopulation and unem...

What is the relationship between overpopulation and unemployment in a country?

Finance, apple is having too much cash, discuss six reasons of why sharehol...

apple is having too much cash, discuss six reasons of why shareholders are so worried

Balance of payment, what economic factors affect current account balances

what economic factors affect current account balances

Calculate ads working capital cycle, Q. Calculate ADs working capital cycle...

Q. Calculate ADs working capital cycle? AD, a manufacturing entity, has the following balances at 30 April 2005: Extract from financial statements:      $000 Trade receiv

What is over-capitalisation, Q. What is Over-capitalisation? Over-capi...

Q. What is Over-capitalisation? Over-capitalisation This is the opposite of over trading. It means a company has a large volume of inventories, cash balances and trade re

Define any financial-economic terminology, Organisations involved in intern...

Organisations involved in international trade and investment seek economic and political stability. For this reason it is prudent for those organisations to conduct a country risk

Inventory days, (Average inventory/Cost of sales) * 365 days Average inv...

(Average inventory/Cost of sales) * 365 days Average inventory can be arrived by taking this year's and last year's inventory values and dividing by 2 - (Opening inventories

The desire amount, To buy a retirement home, you will need $525,000 in 18 y...

To buy a retirement home, you will need $525,000 in 18 years. If funds can be invested at an effective return of 6 percent a year, how much must you invest today to have the desire

Commercia bank functions, list of those and their functions source of fund ...

list of those and their functions source of fund and how the sources are lend out?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd