Garcia's company is considering a $360,000 investment with the following net cash flows. Garcia requires a 10% return on its investments. the present value of this investment is: $535,660.
What is Investment?
A purchase made with the intention of creating income or capital growth is known as an investment. An asset's value increasing over time is referred to as appreciation. When a person invests in a good, they do not intend to utilise it as a source of immediate consumption, but rather as a tool for future wealth creation.
An investment always involves the expenditure of some resource today—time, effort, money, or an asset—in the anticipation of a future return greater than the initial investment. For instance, an investor might buy a financial asset right away with the hope that it would provide income later on or that it can be sold for a profit at a higher price.
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