question on investment in a project
Submitted by vijayavadrevu on Mon, 04/29/2013 - 12:01
In making an investment in a project, investors require compensation for which of the following?
A)The risk-free rate of return plus a risk premium plus a premium for inflation
B)Sacrifice of immediate use of cash for consumption or other investments, possibility of inflation and risk
C)Payback period in years x investment x (1 + discount rate)periods
D)Inflation and depreciation
Answer is given as B
Can someone explain?
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sspawar
Mon, 04/29/2013 - 17:17
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out of boundarymay be of
out of boundary
may be of financial management, but can guess - for B, after reading about.
vijayavadrevu
Mon, 04/29/2013 - 17:25
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OK Sir. Thank you
OK Sir. Thank you