Determining Net Present Value of Cash Flow

We started a discussion on the importance and description of cash flow for the operating firm. You can find that post here: cash flow intro. Moving forward now to the topic of net present value of cash flow (or NPV). An investment project generally should be...

Efficiency and Improvement Theories

Economics is a study of choices and how you make those choices can be defined. Be it to maximize utility, to increase profit, or to improve a situation. Here are some: 1) Pareto Efficiency: a state where it is not possible to make one better without worsening another....

How to Predict Foreign Exchange Movements

The reason domestic currencies drop may baffle some newbie FOREX investors since many movements are rooted in what are called ‘expectations’. You see, currency movements move up or down (depreciate or appreciate) based on expectations and/or real...

NPV and Interest Rates for Discount Purposes

Net Present Value and Sensitivity to Interest Rates This post continues a discussion about cash flow and net present value which you can read by clicking on the specific links. This post deals with a major factor on NPV which is the fluctuating interest rate. This...

What is the tax deductible mortgage plan?

**Posted in 2008.** Again the promoters want to take advantage people’s dislike of taxes. The premise behind the plan is the make the interest on a mortgage tax deductible, by putting one’s mortgage into a self directed RRSP. Mortgage payments then become...

And the Second Largest Employer in the USA Is…..

A temp agency (that Walmart uses, Walmart is first by the way). Temporary workers are all the rage in the post-recession era. Corporations cite stagnant and unreliable economic growth, all while maintaining lofty profits thanks to their treatment of the workforce....