Questions 1: How do you find the benefit-cost analysis and the Valuation Principle can help yourself...

Questions 1: How do you find the benefit-cost analysis and the Valuation Principle can help yourself in your life outside of corporate?

Questions 2: Many lottery winner didn't do well within a few years of winning the lottery. Do you have any advice for these now luckless individuals? Why do so many lottery winners end up deeply in debt?

Solutions

Expert Solution

1. Cost benefit analysis is one of the most important aspect of decision making in which we are comparing the incremental cost with the incremental benefit in order to arrive at whether to undertake a project or investment or not.

Cost benefit analysis will be helping an individual in order to make better decisions in respect to investment and it will also help to gain competitive edge and financial independence.

Valuation principle can help outside the corporate life also because it will be helpful in order to make sound decisions and buy value for price product because there will always be an inclination for buying out value for money product which will be helping us in order to maximize our benefit in the long run and remain financially competitive.

2. Many lottery winners did not do well in few years of winning the lottery because they did not invest their Corpus in a better manner or they did not select for the installment method of receiving the lottery as they were not properly managing with their money and they were always taking higher risk if even if they had won the lottery, so they wanted to maximize their return more through greed and they were irrationally expanded all their money so they did not leave much to save and invest so I will advise them to invest in diverse portfolios in order to maximize the return in the longer period of time and I will be advocating them for investment into passive funds and they can even keep taking calculated risk.

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

Questions below is about how do you see yourself as a seller. 1. How do you...

Questions below is about how do you see yourself as a seller. 1. How do you market yourself?Who are you selling to and your strategies to ensure you are effective in terms of reaching your target buyers? 2. What do you see in yourself in regards to selling in the future?

I have (3) questions: 1. What exactly is the Cost-Benefit Principle, and how does it apply...

I have (3) questions: 1. What exactly is the Cost-Benefit Principle, and how does it apply to ABC? 2. Is JIT just about the reduction of inventory? Please Explain. 3. Indicate which of the following answers to the statement below represents the best choice, then support your view. Indicate why one of the other choices is incorrect. Which of the following is classified as an inventory shortage cost? a. Purchase order preparation. b. Production disruption. c. Lost sales and lost...

What is cost-benefit analysis? How would you apply cost-benefit analysis to your decision to go to...

What is cost-benefit analysis? How would you apply cost-benefit analysis to your decision to go to college? What are the benefits and what are the costs of going to college? b. What happens to your analysis if the interest rate rises? What happens if the payoff period shrinks? Who is more likely to find college economically worthwhile: you for your 63-year-old professor? c. How would you apply cost-benefit analysis to environmental policy? What are the costs of pollution? What are...

• Do a cost-benefit analysis of the selected healthcare organization. Explain your analysis of the cost-benefit...

• Do a cost-benefit analysis of the selected healthcare organization. Explain your analysis of the cost-benefit ratio and how it helps an organization. • Explain the impact of the cost-benefit ratio on recruitment and retention strategies of a healthcare organization. • Outline ways to improve the cost-benefit ratio of the selected healthcare organization. • Explain the role of HRM in ensuring the most competitive compensation package for employees. • Describe methods of improving the compensation package of the selected healthcare...

What is opportunity cost and how do opportunity costs figure into cost / benefit analysis?

Outline the technique of cost benefit analysis and discuss how it can be used to inform...

Outline the technique of cost benefit analysis and discuss how it can be used to inform decision making in the public sector.

What is Cost-Benefit Analysis? Why is it hard to do?

The following questions and cases deal with the subject of cost-benefit analysis of internal control. Some important concepts in cost-benefit analysis are as follows

The following questions and cases deal with the subject of cost-benefit analysis of internal control. Some important concepts in cost-benefit analysis are as follows:1. Measurable benefit. Benefits or cost savings may be measured directly or may be based on estimates of expected value. An expected loss is an estimate of the amount of a probable loss multiplied by the frequency or probability of the loss-causing event.A measurable benefit can arise from the reduction of an expected loss.2. Qualitative benefit. Some...

how can a cost benefit analysis be used to inform decision making in the private sector?

1) "How do you think of yourself? Do you feel like you are more male or...

1) "How do you think of yourself? Do you feel like you are more male or female?" This question is asking about a person's a) gender Identity b) gender role c) sexual orientation d) biological sex 2) A baby was recently born who had very ambiguous genitals. The doctor did a genetic test to find out the sex chromosomes of the baby. It turned out that the child had XX sex chromosomes but must have been exposed to unusually high...

Subjects