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Author Question: Steve is offered an investment where for every $1.00 invested today, he will receive $1.10 at the ... (Read 114 times)

panfilo

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on: Jul 9, 2019
Steve is offered an investment where for every $1.00 invested today, he will receive $1.10 at the end of each of the next five years. Steve concludes that in five years time he will have $1.10 for every $1.00 invested and that this investment will increase his personal value. What is Steve's major error in reasoning when making this decision?
◦ The investment may have hidden costs that will reduce the amount of benefit he receives.
◦ The value of the cash he has today is greater than the value of the cash he may have in the future.
◦ There may be other investments that he can make that will offer even bigger benefits.
◦ Costs and benefits must be in the same terms to be compared.
Fundamentals of Corporate Finance ¦ Berk, DeMarzo, Harford ¦ 2nd Edition
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Marked as best answer by panfilo on Jul 9, 2019

cuttiesgirl16

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Reply #1 on: Jul 9, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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panfilo

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Reply #2 on: Jul 9, 2019
Thanks


cuttiesgirl16

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Reply #3 on: Jul 9, 2019
Welcome :)


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