Investment Process: Step # 1. Investment Policy:

The first stage determines and involves personal financial affairs and objectives before making investments. It may also be called preparation of the investment policy stage.

The investor has to see that he should be able to create an emergency fund, an element of liquidity and quick … Read more

Toyota in France Background In late 1996, Toyota began to look at the whole of western Europe for a site for its ultra-modern plant. Belgium, the Czech Republic, France, Germany, Poland and the UK all seemed to be the … Read more

Hayek’s theory is called ‘monetary’ overinvestment theory’ because it considers ‘overinvestment’ of the economy’s resources in the capital goods sector as the sole cause of the business cycle, and the overinvestment takes place when there is too much expansion of money; cheaper money … Read more

1. Political risk
2. Foreign Exchange Risk

1. NPV uses cash flows. Cash flows from a project can be used for a number of corporate purposes (e.g. Dividends, other capital-budgeting projects, interest payments). By contrast, other forms of inflow such as earnings with ARR are an artificial … Read more

FDI flows to Nigeria dropped by USD 4.52 billion to USD 5.12 billion, the lowest in nine years according to the National Bureau of Statistics. Furthermore, the CIA Factbook highlights Nigeria's FDI stock reached USD 98.73 billion in 2016, a 3.03% increase from … Read more

In the long term, economic growth can only happen if there is investment in an economy.  The investment allows the economy's production possibilities curve to move outward.  This happens because firms can, for example, buy new machinery or develop … Read more

Capitalexpenditure is the expenditure the benefit of it not end for the current financial year but it continues for following years. In short , additional amount spending for advertisement will benefit throughout the years not … Read more

The sales in the financialindustry that are made by large brokerage houses or mutual funds, such as private placements and initial public offerings of stock for companies. Institutional sales are usually reserved for highnet worthclients and are not open … Read more

The United States has been the world’s largest recipient offoreign direct investment (FDI) since 2006. Every day, foreign companies establish new operations in the United States or provide additional capital to established businesses. With the world’s largest consumer market, … Read more

Most of us put in hundreds of hours of work each year to earn most of our money. But when you have savings and stash your funds in the right places, your money starts to work for you. Over time, you’ll need to … Read more

Traditional cash flow analysis (payback) and the accounting rate of return (ROI) fail to consider the time value of money. The internal rate of return (IRR) considers the time value of money and is frequently referred to as the time adjusted rate of return. The IRR is … Read more

The principle of acceleration working by itself is perhaps not much forceful but recently it has attained more importance in the trade cycle theory by its alliance with the multiplier principle. Professor Samuelson has built a model of multiplier- … Read more

A corporation's financial manager, typically the chief financial officer, or CFO, uses financial management to manage the corporate finance functions and transactions. Corporate finance covers the financing and investing activities of a company. Financial management is the process that corporations use to manage … Read more

The typical angel investor is a high-net-worth individual who has an interest in helping new companies expand. These accredited investors provide startups with seed money in exchange for an equity stake in the company. The idea here is that once the company becomes … Read more

The difference between the business and economic profit is that in economic profit, profitor loss is calculated by subtracting the opportunity cost of the inputs used from the revenue ofsales.Conversely, business profit is the difference between total revenue and total costs incurredto earn that revenue.The normal return … Read more

The second bank that offers 8% for 7 years will yield the most money.

Bank 1: 100,000 x 10% x 5 = 50,000

Bank 2: 100,000 x 8% x 7 = 56,000

For me personally, it would be the longevity of the company and, of course, the percentage of return on my investment.