Investment Quizzes Online & Trivia

The correct answer to this question is A. The cashback period in capital budgeting refers to the period of time required to recoup the funds expended in an investment, or to reach the break-even point. The Cashback period intuitively measures how long something takes to "pay for itself." In this instance, you would add up the annual net cash flow until you reach the purchase price of $500,000. Year one ($120,000) plus year two ($110,000) plus year three ($110,000) plus year four ($100,000) plus year five ($60,000) equals the purchase price. Thus, it would take five years to reach the cashback period of $500,000.

9% 216,000 divided 600,000= 216,000 divided by four= 54,000 per year. 54,000 divided 600,000 =9%. The net income formula is calculated by subtracting total expenses from total revenues. The net income equation is relatively simple. It measures excess revenues over total expenses. Net income is a calculation that measures the amount of total revenues that exceed total expenses. It shows the amount of revenue left over after all expenses have been paid. The rate of return is a profit on an investment over some time, as it is expressed as a portion of the original investment. The period would typically be a year, in which case the rate of return is referred to an annual return.

$5,360

FDI stands for Foreign Direct Investment and FPI stands for Foreign Portfolio Investment. The FDI makes it a point to ensure that the company where the investment is made will be controlled while the FPI aims to make sure that profits will be invested in different shares and bonds. The FPI will have no control over the company. A lot of people would rather invest in FPI because they believe that this is less risky. The FPI can be invested in a lot of different things such as bonds, stocks, and even other similar instruments. Still, people can choose what they would like to invest in depending on what they think will be good for them or will fit their lifestyle more.

$35,000

Payback

When it comes to investing, it is important to find the right balance for you and your individual situation. You need to have clear goals in mind as you being investing and sitting down with a financial planner can help you determine the best way for you to balance your portfolio.

Inversely correlated

In canada, regulation of the securities industry is carried out by provincial securities commissions and self-regulatory organizations, including the investment industry regulatory organization of canada (iiroc). each province has government bodies securities commissions or administrators that oversee a provincial securities act. this act is a set of laws and regulations that outlines what participants in the market can do. the securities commissions delegate certain aspects of securities regulation to the investment industry regulatory organization (iiroc), the bourse de montréal, the toronto stock exchange, tsx venture exchange, the ice futures canada, and the mutual fund dealers association (mfda).

$800

It includes time value of money It prefers liquidity It does not accept negative estimated NPV investments

OwnershipWhen you buy stock, you are buying OWNERSHIP in a company.