Explain why it is important in performance evaluation to distinguish between investment centers and their managers.

When should a long-term investment in common stock be accounted for by the equity method?

How can an investor benefit from an equity investment that does not pay dividends?

Find the annual percentage yield (APY) for the investment. $3000 at 6% compounded quarterly

Find the doubling time of an investment earning 2.5% interest if interest is compounded continuously.

Find the annual percentage yield (APY) for the investment. P dollars at 4.7% compounded monthly

Discuss the principal limitations of the cash payback method in evaluating capital investment proposals.

Explain what a ‘payback of two years and six months’ means for an investment project.

Why is it important to distinguish between the performance of a manager and the performance of the organization subunit for which the manager is responsible? Give an example.

How do you use a decision tree to make the best investment decision?

An investment grows by 9% compounded continuously. How long will it take to increase by 75%?

Find the time for the investment to double. Principal: $2500 Rate: 7.5% Compounding: Monthly

If an investment has a positive NPV, would it plot above or below the SML? Explain.

Determine how long it will take an investment to triple if interest is compounded continuously at 3% .