Calculating NPV?
Question:
year 0 = -(100,000) lb
year 1 = 10,000
year 2 = 20,000
year 3 = 40,000
year 4 = 50,000
year 5 = 30,000
assuming opportunity cost of capital is 12%, figure NPV.
having some difficulties beside this
Answer:
NPV is basically the equivalent worth of future money at the present time;
for example, your 17,022.81 today will grow to 30,000 after 5 years at the rate of 12% a year;
NPV is calculated at V/(1+i)^t, where on earth;
V is the value of adjectives money
i is the interest rate at a given time interval
t is the time interval
hence, your example may be calculated as follows by summing up each NPV of respective values.
0.12 NPV
yr 0 (100,000.00) (100,000.00) = (100000)/(1.12)^0
yr1 10,000.00 8,928.57 = 10000/1.12^1
yr 2 20,000.00 15,943.88 = 20000/1.12^2
yr 3 40,000.00 28,471.21 = 40000/1.12^3
yr 4 50,000.00 31,775.90 = 50000/1.12^4
yr 5 30,000.00 17,022.81 = 30000/1.12^5
2,142.37
hence, NPV = 2,142.37 on the assumtion that the 100,000 investment be spent at the beginning of yr 0.
Net Present Value: 907.61
NPV (Net present value) = $180,484.26
If you hold excel, you can use the NPV function, and then join in the rate and values and own it calculated automatically.
What is the best online site for buying stocks?
Question:
I am looking to increase my investment portfolio beyond a 401k, and buy some stocks. Looking for a low initial investment and low fees. What is the best online trader?
Answer:
TDAmeritrade is the best hands down. No nickle and dime fees, in recent times flat $11 trades. Beware of sites that have lower trading fees, they will carry you with fees close to maitenence fees, dues, quarterly administrative charges.
Stick with TDAmeritrade and you will be only just fine.
i use sharebuilder.com
I like tdameritrade
I use Scottrade. They come across to have the lowest fees.
I approaching Scottrade, TD Ameritrade and Fidelity. I think Scottrade may be best within terms of small initial investment and low fees.
If you enjoy little money and want to start slow go near sharebuilder.com, if you have some lolly to play with and want to be an busy trader go for scottrade.com. They proposition low trades of $7.00, no minimums, local branches so you can go chitchat to someone in personality.
For some great advice budge to thestreet.com
Just2Trade. ($2.50 USD)
Scottrade
If you need further info you can im
beard51279@yahoo.com
Is ARTX ever going to step UP?
Question:
Arotech Corporation.. it's a joke? Whats beside these companies that say "merely received millions of dollars worth of orders...blah..blah..blah..." and the stock don't jump up a dime?
Answer:
It's called "pump and dump" (G00GLE it for details). You'll never kind any money following the advice of spam messages for penny stocks.
I bought that about a year ago and sold it nearly 4 months later. I wouldn't even spend foolishly time with it. If you own less than $500 invested, I would of late wait it out. Maybe you'll bring lucky. They make adjectives that stuff for the military you know.
Trades over 100,000 shares a day and I own no idea why. I'm chart-oriented and it looks sick, short possession and long term. And, to BOB, hey, if you wouldn't buy it today, consequently sell it today. Holding this stock looks similar to being married to an monstrous woman and hanging on hoping things will upgrade.
How do I become an "Investment Banker" after graduate next to a Finance Degree?
Question:
Answer:
You have to be prepared to start in an entry horizontal position. Most investment banks individual hire fresh grads from very dutiful schools (preferably Ivy League) BUT the worthy news is that, you can still grasp into these firms by properly networking and also in recent times being liable to start from the bottom. An MBA and/or a CFA designation definitely help too. Find out if your college has a art development program where on earth possible alums may be in the corral that you are trying to get into and may be prepared to help you out and dispense you a recommendation/referral. Good luck!
When buying mutual funds, what are the most esteemed aspects to look at?
Question:
Okay, I'm new to investing contained by funds.
I know a bit here or there, but I'm still research. I don't know enough to trust myself jump into anything yet.
What I'm looking for is long-term stuff, resembling something for retirement. I'm 22 now so I guess it's a great time to start.
What is the top parameter I should look for when browsing mutual funds? Like when browsing MorningStar I see NAV and Expense Ratios (I know what they are) but how do I know what is more important? Also, once I know what is influential, how do I know if it's good. I figure you probably want a low expense ratio, but what would you consider "low"?
I guess I just wanna know what to look for surrounded by numbers.
Answer:
I'm not a big fan of actively manage mutual funds because I think most nation can do a better job managing their own money by diversifying into individual stocks and bonds or simplying by purchasing index funds. Over 70% of adjectives actively managed mutual funds underperform their benchmark so why retribution management fees for underperformance?...it make no sense...Having said that if you are certain that you want an actively manage mutual fund follow these guidelines.
1. Look for funds that have outperformed their benchmark surrounded by both bull and bear market
2. Realize that the fund manager is more prominent than the name of the fund so once you find a fund that have consistently outperfomed make sure the fund bureaucrat responsible for the performance is still managing the fund.
2. All else individual equal, choose the fund with the lowest expense ratio and always opt for no nouns no transaction fee funds...here are plenty of good ones out at hand so there's no sense in paying a excise when you don't have to.
look at the long residence (10years or more) return of the fund, i like to compare it to others surrounded by the downturn years at the beginning of this decade
check the beta and deviation, they can show you how volitile the fund may be
get sure you know what sector it is in, to fit it within your asset allocation
check and see how morningstar rates it, i wouldnt buy into one unless its at least 3 stars, or is too modern to be rated
expense ratio is huge
no load/load fund?
also, if it is surrounded by a taxable fund you may want to check the turnover, if they are turning stocks over and over it can affect your taxes
see if managment is new, long occupancy results don't mean profusely if the manager a moment ago changed
pends on what you are looking for in a mf. No nouns means lately that you are not paying anything extra to purchase an MF (this is a must) the lower the expense ratio the better there are plently of great no nouns funds of under 1.00 the NAV is that days price but you want to sneak a look at the 52 week lofty and lows when looking at the NAV . Since you mentioned morningstar take a look at their classroom tutroing its free and you will revise a lot here.
First off great you are already thinking around your retirement!
I used to think mutual funds where on earth the way to be in motion but most of the time they don't beat the stock indexes similar to the S&P 500. It seems the fees and manager not picking the right stocks lead to this problem. Index funds and exchange traded funds (ETFS) should be an preference you look into. They have hugely low fees and they mimic the indexes. I found a quick over scenery of mutual funds, index funds, and ETFS
http://investingguide.dominateoptions.co...
Its good you aren't purely picking any one fund but all the "numbers" you are looking at will rise and fall depending on many variables close to what the funds invest in. Some funds might own a high expense ratio but you could be paying for top of the rank management beside a good track copy. And the NAV is just the helpfulness of the shares.
Sorry I wasn't much help next to mutual fund numbers but I think you should look into index and ETF funds.
Good Luck
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How would you invest $100,000 near 10-15 years of investing horizon?
Question:
Would you invest in actual estate, mutual funds, stocks, S&P 500 index? or a mix of all.
Answer:
With 100k you hold enough possessions to acquire a very diverse portfolio of investments except for valid estate. It is a good impression to diversify so here would be a reasonably apposite plan.
10k in t-bills
20k contained by S&P 500
20k in European stocks through a mutual fund or index fund
10k within Japanese stocks through a mutual fund or index fund
10k in Chinese stocks
10k within Indian stocks
10k in small bonnet stocks
10k in mid sunhat stocks
With the exception of Bush starting a nuclear war, that should bequeath you a good return over a 10 year interval with single moderate risk.
I would invest primarily in medium-risk mutual funds, preferrably base in the medical or defense sector. I would also place a smaller portion in grease and alternative energy sector. Finally, I would leave probably $10,000 in 10 year bonds, for a consider of stability if all else go awry.
Hi there,
If it be me i would either put the full amount into manage fund, preferably a geared fund so that you multiply the amount your making.
Or
I would split it into 2 or 3 amounts and use them as deposits on properties in income cities, that way you can't walk wrong.
Cheers, ToNy!
"Success.Trail"
I'd get myself a nice, fleshy, juicy interest rate on a jumbo disc and let it ride. I'm a fixed-interest-rate personage and firmly believe in the power of compound interest. If you shop around for a moment, you should be able to find a place that compounds interest on a monthly cause. You'd end up next to a nice chunk of change after that length of time.
If you're looking for something you could liquidate contained by less than 10 years if the entail arose, you could go beside shorter-term CDs and still have interest rates that are close to matching as the longer-term ones.
I've found that credit unions recurrently offer the absolute interest rates, and they usually have wonderful introductory rates on what they bid "new money."
If this money is from earn income or would be a rollover from an IRA or pension... I'd consider doing a Roth IRA. It's after-tax money that could be withdrawn after 5 years short any penalties and so on.
It would depend on what investments you already enjoy.
Myself, if I had an more $100,000 to invest today I would use $50,000 as a down payment on another $250,000 investment property (rental) and the remaining $50,000 contained by indexed funds.
But that is base on my current mix of assets. It will depend on your situation, your risk tolerance and your willingness to invest contained by different assets (for example some people do not want to be landlords - so their existing estate investments would be mostly REITs for diversification purposes).
A small mix, check out AIGYX and PRLAX on MSN's Money site under fund look up and check out the proformance history.
Stocks next to the help of a Portfolio Manager.
Buy Long Call and Long Put stock option for a living?
Question:
Can you buy and trade Long Call/ Long Put (or Short Call/ Short Put) stock options as a steady income? Without edge? No other strategies?
Answer:
I think if you just buy long option positions it would be amazingly difficult (nearly impossible) to make a living. In suggestion it would be possible, but you would have to exceptionally good surrounded by picking the options you bought. You would not call for a margin vindication if you only help yourself to long positions.
I have see people next to large accounts take home a living for two or three years writing (selling short) options, a strategy which does require a edge account. However, most of them hold lost more than a years' worth of profits in a moment when the market have moved against them. (The ones I have not see experience such losses have not traded long plenty to run into such a market move.)
Every professional leeway trader I have see making a living at it for an extended period of time have traded spreads. Most, if not adjectives, of them also use stock positions to hedge option positions at times.
to do this you need to be right and you have need of a margin reason. In this flakey market you enjoy a good arbitrariness at losing your shirt. It's not a wise stragety.
You will call for a margin narrative.
What you want to do is a straddle? It's not always within the money though.
You don't need a edge account to buy call or puts or to sell call on stocks you already own. You will need clearance from your broker to trade option (they won't let you buy call or puts without at tiniest some experience, generally.)
In argument you could do it. Of course options are FAR riskier than stocks because they removal any intrinsic value--even if a stock does what you think it's going to, if it does it after the expiration date for the option your correct market judgement is worthless. Any investment vehicle, no business how much money it can make, should be view with great suspicion if it can lose you 100% of your money contained by a few weeks.
You can also simultaniously buy calls and puts on like stock as a hedge. While this does dwindle your risk it also reduces the opportunity for profit. You'd almost certainly enjoy to engage surrounded by some form of hedging for your own protection.
In practice they're probably best kept as a small part of your portfolio. Unless you are a remarkably experienced investor who is very well-mannered at spotting turnarounds in stocks I'd use them extremely sparingly.
Options are type of financial insurance instruments thus buying them has low probability of profit.
Most substitute option investment programs are base on short selling (writing options) but this strategy needs giant knowledge of risk regulation.
Yes. (If you have at lowest possible $250,00.00 USD)
Options can best used to help put off or protect an equity position. For example, the covered call, protective put or collar are spread strategies that most anyone can use. However, a outside edge account is required. I do not recommend, unless you really know what you are doing, picking strategies such as selling naked puts or uncovered telephone call writing. Most discount brokers will not let you do it anyhow unless you hold at least something like $25K in cash/securities within your account. Even nude put writing is very precarious because you potentially could be "assigned" virtually worthless stock and many speculative investors own been wipe out this way. As for uncovered name writing, you might as well lately go bet surrounded by Las Vegas, in my view, to try this speculative and dangerous strategy. You will enjoy to come up with stock potentially at a incredibly high souk price to deliver it at a much lower strike (ouch!). As for the collar, not everyone likes doing it but I contemplate it can be quite profitable. You can write a covered phone and buy a put, both out-of-the money. The risk is being assigned, but if you write out of the money, you are not going to lose anyhow. Besides, you still manufacture some money and can keep playing. If you really don't want to lose the upside, only buy the protective put. Sure, it will likely run worthless, but so what? Do you consider owning car insurance worthless if you don't own an accident? Lastly, puts can be a right thing, and they are MUCH better than Selling Short, which within my opinion, is in the region of as dubious as uncovered call or undressed put writing.
If you have to ask this cross-examine, then the honest answer is that while technically it might be possible to do, YOU would not know how to do it. You'd just be having a bet with your money. (Which is your right, if you so desire, but you might do better picking a horse!)
How is the DJIA calculated?
Question:
What formula is used when determining the movement of those thirty stocks
Answer:
It is calculated by adding up the prices of the 30 stocks contained by the index and dividing by what is known as the Dow Divisor. Currently, that number is .12482483. That divisor is on the same wavelength for splits and replacements of one stock for another in the index. If a split or replacement occur, you take the revised closing prices divided by the closing index that time, and that is your trial divisor. I believe the divisor started out at 10, it's been reduced to what it is in a minute over the years.
The Dow is a collection of stocks, if you can view it that means of access.
I think it is around 30 or more stocks, (blue chip) and some will shift up and some will go down on a given trading year. That makes a numerically calculated average on a day after day basis. The stocks are from different flea market sectors, representative of buy / deal in trends. I would think the formula could be influenced, example, much trading contained by a particular sector, and also believe the DOW to be so resourcefully established as a benchmark, that the market maker might not see any reason to provide up that information.
. Which of the following information not displayed on the souk keep under surveillance peak?
Question:
a) Best buy quantity
b) Best go price
c) Last traded price
d) Last traded quantity
Answer:
In my software adjectives are shown
Best Traded Price
Best Traded Quantity
Best Buy Quantity
Best Sell Price
Best Product
Best Manufacturer
Best buy & best sell
www.letsgobble.com
second traded quantity is not displayed on the souk watch peak
Does anyone know a accurate company to invest contained by?
Question:
that makes Ouzo?
The Greeks will be drinking lots of it within the near adjectives to cope with a humiliating football loss and I could stand to breed a lot of money.
Answer:
i approaching ouzo...but grappa is better
(nue ) nucor steel
Where can i find 15 minute delayed footsie 100 stock prices?
Question:
It is the individual stock prices that i wish to own access to - not the index.
Answer:
medved freeware on quotetraker.com
real time
http://uk.nouns.yahoo.com/ is one place where you ought to know how to get any UK stock quote.
The LSE website ptrovides this and so do the nouns sections of websites resembling Yahoo.
REuters or the FT website does as well
Try Interactive Investor :-
http://www.iii.co.uk/markets/?type=ftse...
http://www.cmcmarkets.com/
Download the trial software if you'd resembling. It still gives you to hand real-time price/information about every registed company contained by the stock market, not solely in the UK, but for USA, Australia, Hong Kong, Canada, Gold, Oil etc etc
Which of the following leisure a trading appendage cannot get out at pre-open phase bazaar:-?
Question:
a) setup market monitor screen
b) lay down entry ( in commonplace market )
c) Quick demand cancellation
d) Order modification.
Answer:
d
$10,000 contained by unadulterated time stock trades, what trading site should I use?
Question:
I am going to be looking at trading stocks this September. It looks like I’ll be playing around beside $10,000 In real time trading. What would be my best selection for cost per trade under which site? I’ll be trading day by day so I am wondering what reputable site has low trade fees but perfect service and analysis. I’m not interested in mutual funs, bonds, ect.. I’m looking to earn a second surrounded by come.
Answer:
-=-
Scottrade. No minimums. Great software. $7/trade. But with $10K, even if you doubled the standard ROR of 8%, if you really grasp stock charts and fundemental, I wouldn't quit your day profession, unles you can live on $20 to $30 per day.
Scottrade. Good luck!
Check this out contests.cnbc.com\milliondolla...
or cnbc.com
You will be fed alot of option on your question. But when It comes down to it, other remember...diversity, daily used products, and I'll embezzle 5%. Goodluck.
I remember the movie 'A Mid Summer Night's Sex Comedy' in which Woody Allen introduced himself to someone and said, "I'm a stockbroker. I invest other people's money until it's gone."
Have fun.
I have a trade thing for similar to 500000 $ and I went to cnbc.com great site hope you similar to
I would recommend etrade they have excellent research tools and legitimate time and global trading
www.etrade.com
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Zecco.
Can anyone describe me anything going on for http://www.tdameritrade.com/?
Question:
is it lf i apply an account, i will use my credit card to put money inside the narrative and then buy stocks and they will discount from my credit card ? Thank you
Answer:
You can only do it by flex, check or direct deposit from your bank depiction. Why would you want to take money stale your credit card to invest? That's is one goofy move my man.
If you still want to do it that way, you will own to call your credit card company and get hold of them to put the funds in your dune account. From within, you can deposit it into ameritrade account.
You cannot invest somebody else's money within the Stock Market.
1. Which of the following is true near respect to NEAT System?
Question:
a) NEAT System enables member from across the country to trade simultaneously with vast ease and efficacy.
b) In the NEAT system a member punches into the computer quantity of securities and the price at which he wants to transact.
c) The transaction is executed though the mainframe computer of the exchange as soon as the writ punched finds a matching trade or buys order from a counter gala.
●d) All of the above. 1 Mark
Answer:
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