Answer / chandrasekhar hota

In finance Investment means buying securities or other
monetary or paper (financial) assets in the money markets
or capital markets, or in fairly liquid real assets, such
as Gold as an investment, real estate etc.
Types of financial investments include shares and other
equity investments and bonds.
Equity investments generally refer to the buying and
holding of shares of stock on a stock market by individuals
and funds in anticipation of income from dividends and
capital gain as the value of stock rises

Answer / raghuamam

in simple investment means employement of funds in order to
generate future returns or future income.

Answer / rajesh dandge

Investment means the purchase of goods which are invest
and not used today, which will give benefit in future.

Answer / divya

Investment refers to investing in shares,stocks,commodities
or in any financial instrument for the purpose of gaining
profit.

Answer / kirubakaran

Investment means putting some thing (money) to any things
(shares, funds, businesses),it will return some profit or
interest in future.

Answer / reddydeeps

the money u earn is partly spent and rest saved for future
expenses.instead of keeping savings ideal this money is
invested to earn additional income this is called investment

Answer / pradeep

INVESTMENT means buying securities, bonds and funds for
making the profit in future in which high risk is also
available and the investor who buys the funds and
securities have to bear the risk on his part.

Answer / naser sassi

"Investment is the value of that part of the economy's
output for any time period that take the form of new
structures, new producers, durable equipment, and change in
inventories". WE can say, also, Investment is spending on
capital goods by firms and government, which will allow
increased production of consumer goods and services in
future time periods.

Answer / naser sassi

Investment is spending on capital goods by firms and
government, which will allow increased production of
consumer goods and services in future time periods.

Answer / amin

A current commitment of $ for a period of time in order to
derive future payments that will compensate for:
The time the funds are committed
The expected rate of inflation
Uncertainty of future flow of funds.

What are treasury bills?

0 Answers   Nabard, SEBI, State Bank Of India SBI,

Can you differentiate between cheque and draft?

0 Answers   State Bank Of India SBI,

What are NPA? How can they be reduced?

0 Answers   State Bank Of India SBI,

If given a chance to improve the economic situation of the country, what are the various initiatives you will take?

0 Answers   IBPS,

In California What Property Can I Keep?

0 Answers  

Why do companies find public deposits attractive?

0 Answers  

Is IDBI Bank a nationalized Bank?

0 Answers   IBPS,

How is E-commerce related to social media?

0 Answers   LIC,

Why should we give this job to you?

0 Answers   Nabard,

What is a Debenture? How many types of debentures are there? What are they?

1 Answers  

Read the case given below and answer the questions given at the end. Krutika Designers Ltd is an Indian company engaged in designing shirts for an international shirt manufacturer. Its operations are currently restricted to designing shirts for the Indian market. The firm is interested in extending its operations to the European markets, but is restricted by its lack of knowledge about the latest fashions and trends prevailing there. Hence, the firm has decided to open an office in Finland for establishing a network in Europe that will give the firm access to the needed information. The firm feels that its does not have the capability of sustaining itself in the foreign markets in the long-term, and will be able to generate additional revenue from these activities only for the next 5 years. After that, the Finnish office will have to be closed down. The firm anticipates an initial investment of Rs.14 million. The project is expected to generate the following cash flows over the 5 years period. Year Cash flow (Finnish Marks) 1 2 3 4 5 10,00,000 20,00,000 50,00,000 50,00,000 30,00,000 These cash flows are expressed in terms of today’s money. The firm can claim depreciation in India according to the Straight Line Method. The salvage value from the project is expected to be nil. The Finnish Government does not provide any incentives for foreign investments. However, currently it is making an attempt to have better economic ties with India. Hence, it has decided to extend a loan of 50,000 marks to Krutika Designers. The loan will be at a concessional interest rate of 7%. The loan is to be repaid in 5 equal annual installments which will include the interest payments. The project will generate additional borrowing capacity of Rs.5 million for the firm. However, as the firm does not have any firm contract with the international shirt manufacturer, its domestic revenues are expected to be very volatile. Therefore, there is no surely that the firm will be able to absorb the tax benefits arising out of depreciation and additional borrowing capacity. The firm does not intend to indulge in any illegal money transfers. The current spot rate for the Finnish Mark is Rs.7.25/FM. The inflation rates in India and Finland for the next 5 years are expected to be 8% and 3% respectively. The exchange rate is expected to move in tandem with the inflation rates. Indian tax rate is 35% while Finnish tax rate is 40%. India and Finland have entered into a tax treaty whereby the earnings of the residents of one country are taxable in that country only. In India, the nominal risk-free interest rate is 11%. The same is 6% in Finland. The Indian nominal interest rate (including risk-premium) is 15%, while that in Finland is 9%. The nominal all-equity rate in India is 18%. 1. Comment on the financial viability of the project. 2. What are the different circumstances in which nominal all-equity discount rate and real all equity discount rate should be used for discounting the cash flows? Explain the rationale behind it. 3. Comment on the financial viability of the project if the firm is sure about being able to absorb the tax benefits arising out of depreciation and increased borrowing capacity. 4. Explain the concept of exchange risk and how it affects an international project. 5. How can the financial structure of a project be used to overcome repatriation restrictions? What are the additional benefits of such maneuvers?

0 Answers  

What are the advantages of leasing for the lessee?

0 Answers