Net difference between the cost and benefit

Assignment Help Financial Management

Reference no: EM13847901

An investor has the opportunity to buy a $10,000 government bond which is guaranteed to yield 6.5% interest in one year's time. The investor decides to make the investment as there is a net difference between the cost and benefit. Which of the following is NOT a reason that the investor's decision may be flawed?

Reference no: EM13847901

Questions Cloud

Save for retirement withdrawal period : You are planning to save for retirement over the next 30 years. To do this, you will invest $720 per month in a stock account and $320 per month in a bond account. The return of the stock account is expected to be 9.2 percent, and the bond account wi..

Investment policy and present value : The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $33,000 per year forever. If the required return on this investment is 5.8 percent, how much will you pay for the policy?

Primary reason to have assets : A primary reason to have assets is to ____.

What was the cash flow from operating activities : W.C. cycling had $63,000 of cash at year end 2011 and $14,000 in cash at year end 2012. the firm invested in property, plant, and equipment totaling $190,000. cash flow from financing activities totaled +$210,000. what was the cash flow from operatin..

Net difference between the cost and benefit : An investor has the opportunity to buy a $10,000 government bond which is guaranteed to yield 6.5% interest in one year's time. The investor decides to make the investment as there is a net difference between the cost and benefit. Which of the follow..

Two different salary arrangements-interest rate : You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangements. You can have $82,000 per year for the next two years, or you can have $71,000 per year for the next two years, along wi..

Amount of interest accumulated at time of retirement : Emily Dorsey's current salary is $74,000 per year, and she is planning to retire 27 years from now. She anticipates that her annual salary will increase by $2000 each year ( $74000 first year, $76000 second year...) and she plans to deposit 10% of he..

Metal fabrication-Pricing raw supplies of aluminum : A metal fabrication company is pricing raw supplies of aluminum. The following are the costs to the company to receive one tone of aluminum from various sources. Which source offers the best price for aluminum per ton?

The flow of funds through firm : The flow of funds through a firm would be as follows:

User Account

All Pages