INTRODUCTION TO INVESTMENT MANAGEMENT The Concept of Investment: □ An investment is the current commitment of funds for a period of time in order to derive future benefits. □ Investing involves making a sacrifice in the present consumption in the hope of deriving benefits in the future. □ Every investment decision has two aspects; Risks and Returns: □ Every investor looks to be compensated for; i) Time the funds are committed ii) The expected rate of inflation
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Ten Years From Now My primary goal over the next ten years is to graduate from the University of Florida. I will major in advertising and possibly minor in business administration. I will graduate with a Masters of Advertising (M.Adv.). In order to get this degree‚ I have to complete at least one hundred and twenty-four hours of credits. Some of the classes I will need to take for my major are Principles of Macroeconomics‚ Principles of Advertising‚ Advertising campaigns‚ and Media Planning.
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Penta ltd (Investment appraisal) Introduction What is investment appraisal? It is the activity responsible for carrying out a cost benefit analysis to justify capital expenditure for a new investment. Capital investment decisions are those decisions that make current outlays in return for a stream of benefits in future years. . The characteristic of many investments is risk and uncertainty. many organisations prefer to avoid high risk investments but may consider these investments if they
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Jaleel Gilliam Ch. 2-04 3/3/15 02.04 Investing Basics Chart Use this chart to take notes from the lesson. Some information has been provided for you‚ but you can add additional details to those sections. Investing Basics Type of Investment Description—explain what it is and how it works. Level of Risk and Potential Return—explain. Real-life example of this investment (name or company) Minimum investment amount or time? Easy to start or stop investment? Discuss. CD Is an account where a saving note
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Nature view Farm is a small yogurt manufacturer with annual revenue of $13 million. It produces three different size cups – 8 oz. cup‚ 32 oz. and 4 oz. cup multipack and operates through the natural foods channel. Nature view has established its brand as a premium yogurt brand in the natural foods market and is now considering expanding its operations into the supermarket channel to reach its revenue target. The company is faced with the strategic marketing decision to increase its revenues from
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Sydney & Samuels International Limited FEASIBILITY STUDY FOR SYDNEY & SAMUELS 51MW HYBRID WIND FARM PROJECT‚ KWANKWASO‚ MADOBI LGA‚ KANO STATE A Gideon Goldmann Feasibility Report Gideon Goldmann Feasibility Study on Proposed WTG for Sydney & Samuels by the: Advisory Sydney & Samuels International Limited Table of Contents Section 1: Introduction and Executive Summary 1.0 Report Methodology 1.1 Introduction 1.2 Project Description 1.3 Feasibility of Proposed Project:
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Pre-Feasibility Study BROILER FARM (7500 Birds) Small and Medium Enterprise Development Authority Government of Pakistan www.smeda.org.pk HEAD OFFICE 6 Floor ‚ LDA Plaza‚ Egerton Road‚ Lahore Tel: (042) 111-111-456‚ Fax: (042) 6304926-27 helpdesk@smeda.org.pk th REGIONAL OFFICE PUNJAB REGIONAL OFFICE SINDH REGIONAL OFFICE NWFP REGIONAL OFFICE BALOCHISTAN 8th Floor ‚ LDA Plaza‚ Egerton Road‚ Lahore 5TH Floor‚ Bahria Complex II‚ M.T. Khan Road‚ Karachi. Tel:
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rate minus the inflation rate. Suppose the (expected or realized) inflation rate increases from 3% to 5%. Does the Fisher equation imply that this increase will result in a fall in the real rate of interest? Explain. The Fisher equation relates nominal rates required by investors to real rates required by investors and inflation. You can think about this from two perspectives: i. Ex-ante (before) required Nominal Return as a function of required Real Return and Expected Inflation: (1 + rNominal)
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The Investment Detective Case We can use normal investment to calculate the data‚ but we also can do it as reinvestment to invest every project for the same years. For every question‚ I will give answers for both normal investment and reinvestment. 1. We can rank the projects simply by the cash flow data. Normal investment: Rank 1 2 3 4 5 6 7 8 Project number 3 8 6 1 5 7 4 2 Cash flow 8000 2150 200 1310 2200 560 1561 165 Reinvestment: Rank 1 2 3 4 5 6 7 8
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1. THE INVESTMENT DETECTIVE This case presents the cash flows of eight unidentified investments‚ all of equal initial investment size. The student’s task is to rank the projects. The first objective of the case is to examine critically the principal capital-budgeting criteria. A second objective is to consider the problem that arises when net present value (NPV) and internal rate of return (IRR) disagree as to the ranking of two mutually exclusive projects. Finally‚ the case is a vehicle for introducing
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