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Please define and describe present value. How do the features of interest and time (or term)...

Please define and describe present value. How do the features of interest and time (or term) impact the present value of mrp? As an economist, please define and describe and investment. Please discuss three elements you think a firm should take into account before considering a possible investment.

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Answer #1

Present values is current value of future sum of money at specified rate of return.

Present value is inversely proportional to interest rate and directly proportional to time.

An investment is defined as purchase of goods which is usually arent consumable tpday but used for welath creation in future.

Forms must seek possibility of investment when the return on investment is higher, when the sectoral forces are minimum and when there is moderately low to moderately high risk adjustable returns.

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