Money problems investing

The lack of credit markets and the indivisibility of cattle imply that households must be able to put up relatively large amounts of money to invest in cattle rearing. However, poor households with low initial endowments from which only low incomes are earned find it hard to save enough to invest in cattle. That problem is exacerbated by the fact that, because of low endowments, the poor have limited ability to cope with shocks. Consequently, such households enter into safe, lower-return activities, making saving even harder. That combination of Actors explains why poorer households specialize in off-farm activities (such as weeding or casual labor) that require few skills or investments but are sale. That pattern effectively traps poor households in poverty, despite the attractive investment opportunities that exist in the area. 

Investment.—We give an interesting illustration of a combined optimization and probability problem given by B. Boy. It is a trivial matter to show that an amount of money (1 + r) k, invested at the compound interest of r% over a period of h years will become a unit amount. 

The problem with all such ideas is that they are only ideas. Before they can be tuned into real possibilities, considerable R. D. would have to be undertaken, perhaps lasting 10+ years. If successful, which of course cannot be guaranteed, commercially sized demonstration units would have to be built and operated satisfactorily before the generating industry would be Willing to take the risk of investing in these developments. All this implies that with the possible exception of the modular HTGR, it may be 20.years or more before the first commercial plants come into operation We may well have the time, but ways will have to be found to find the money. 

Pick up any newspaper or watch any news program chances are that these media use percentages to make their information clear. Every time you shop for a sale, borrow money, choose a credit card, invest money, or pay a tip to a service worker, you use your understanding of percents. Percents are special ratios that compare a part to a whole the whole is always one hundred. Percent problems can be solved just like any other type of ratio/pro-portion problem. This chapter will also review alternate methods to solve percent problems. 

When David asked me where I thought the human race should be focusing its scientific efforts, my first inclination for scientific investment was to consider all the standard or obvious areas of basic research aimed at alleviating or understanding disease, world hunger, and environmental problems—and research in synthetic fuels and agriculture. However, because we are already directing money toward most of... 

The Problem You have 10,000 to invest over the next year and will put some of the money in an account earning 12 percent (risky) and three times as much as that in an account earning 4 percent (safer). How much interest will you earn ... 

The Problem How much money must be invested in an account that earns 5 percent simple interest per year if the interest must come out to be 6,000 ... 

The Problem Robert has 50,000 to invest. He wants to put some of this money in an account that earns 8 percent interest and the rest in a riskier account that promises to earn at the rate of 12 percent. He needs yearly earnings of a total of 4,500. How much of his 50,000 should he invest in each account ... 

The Problem The local Kiwanis Club needs 20,000 in interest annually in order to adequately fund its benevolence programs. It currently has 120,000 invested — one-third of it in a mutual fund earning 5 percent interest and the rest in a money-market fund earning 10 percent interest. This division of the funds is mandated by its endowment agreement. How much more money does the Kiwanis Club need, and how much does it have to have in each fund in order to earn that 20,000 annual interest ... 

It is, of course, possible to add up all of the revenues over the project s lifetime and to compare this sum with the total investments. If the revenues exceed the costs, then the project is apparently profitable, but if the reverse is true, it is not profitable and no manipulative techniques will be able to make it so. The comparison of costs and revenues, in an appropriate fashion, is the target of economic appraisal, and its first problem is to deal with the time value of money. 

The first step in the solution of this example problem is to determine the amount of money saved per year for each design, from which the annual percent return on the initial investment can be determined. The net annual savings equals the value of heat saved minus the sum of the operating costs and fixed... 

Under actual conditions, efficient spending of money and, especially, they investment into the most topical decommissioning and environmental rehabilitation areas are the issues of paramount importance. In this context the problem of justification of priorities, when addressing the complex decommissioning-related challenges, becomes especially acute. 

With any two partners, there are always problems and issues to deal with. There are differences in goals and values (see Box 5.8). Those of us in industry deal with the marketplace we focus on return on investment. We are very cost conscious. We go out of business if we are not cost competitive. We are for-profit we have to provide a return to our shareholders, and we always have to keep the results of innovation as a competitive advantage. That is how we make money. And, of course, timing is everything. 

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