What are the advantages of modified internal rate of return over internal rate of return?
541724
Modified IRR is more realistic than IRR as it takes in to account your "reinvestment rate".\n\nFor example, let's say you buy a very risky bond that yields 10% per annum for 3 years.  Your cashflows are \n-100\n10\n10\n110.\nAnd the IRR was 10% (luckily the bond issuer didn't go bust whilst you held the bond!\n\nBut let's think about what that 10% IRR really means.  When you get your first 10%, what do you do with it? Are you able to buy more of that 10% bond and reinvest at a rate of 10%?  Probably not, as this may not be enough money to buy the minimum investment amount.  So you probably put it on deposit at the rate you are able to get in your bank account, which will be less than 10%.  The same goes for the other 10% payment you get in this three year example.\n\nThe MIRR needs an extra piece of information - the "reinvestment rate" that you will get when you deposit or reinvest the money paid by the bond (this can also refer to an investment scheme in general, not just a bond).  The MIRR then takes into account your reinvestment rate.  If your reinvestment rate is lower than the "simple IRR" then the MIRR will be lower, thereby relfecting the fact that your economics aren't as good as the IRR suggests.\n\nSO the advantage is that the MIRR is more realistic than the IRR.
355652
Pro - you will have higher interest rate compare with regular saving.\nCon - You cannot withdraw the money before the expiration unless paying some sort of penalty.
644997
Savings bonds are sold by the US Treasury to finance the running of the government. "EE" bonds are currently at 3.70% interest rates; the "I" bonds are 2.41%.\nCertificates of Deposit are issued by individual banks, and offer a higher rate of return than the banks normal savings account. Banks can offer these higher returns because you guarantee the money will be there. Rates differ between time frames and banks; ING is offering between 4.75% yeild for terms of 6 months or over 30 months, and 5.25% APY for 12-month CDs.
846678
There is a direct relationship between expected return and risk.  If you want a quick return, then you should make risky investments.  While the expected return of risky investments ins higher, you should know that there is also a risk of loss.\n\nIf you do not want any risk, then you can get about 5% per year from treasury bills.
543463
Why would you want to keep the Internal Revenue away.  They are such nice people .....they take your money from you without any bother to you.\nPretty damn neat I say....back in the days of yore  (yes finally something before my time) they called them robber barons.....:)
983389
There is more of a disadvantage than an advantage.  The disadvantage is that when you buy a bond before the interest payment date, the accrued interest is added to the price of the bond, which means that the bond is actually costing you more money than you might have anticipated and your yield is not going to be so high as the bond broker stipulated.  The broker will tell you that you will get the money back when the interest is paid, but in the meantime you are loosing interest on that amount.\n\nAlso do not forget the tax treatment of the accrued interest.
508650
One advantage of the trust is that it shields the house from your creditors. The trust owns the house and not you. Any judgment that might be entered against you will not be a lien the house.  Same goes for your sibling.  Any judgment against them does not affect the house while it is in trust.  Another advantage is that no one will know you own a house from the public records.  If they don't know you own property, your creditors are less aggressive in going after you.  \n\nAnyone who sells their interest is subject to tax on the profits.  If it was over a year then its capital gains tax at 15%.  No tax is due until the interest has been sold.  \n\nThe only disadvantage for leaving the property in trust is that it is pretty hard to refinance the mortgage with the trust as the owner.  If you don't need to refi, leave things alone.
675223
Changes in interest rate will influence the ability of people to afford the product. (Higher rate, less disposable income, less buyers)\n\nExchange rate will influence the ability of foreign products to compete with the product. Your exchange rate strengthens, imports become cheaper/ more competitive.
768822
Interest rates, stock market health...  Basically any competing product.  When things are good in higher risk (stocks), bonds don't do as well.  When the market is tanking, then bonds become more desirable.
828492
I have no idea what a "cash tax rate" is.  The primary reason for differences between GAAP tax LIABILITY and actual tax liability is that certain income and expense items are recognized in different years for financial reporting purposes that for tax purposes.  GAAP attempts to recognize tax liability in the same year as it recognizes income, even if this differs from the year the IRS recognizes it.
198236
Hi..\n\nRish free rate of return is equal to secured return i.e. return on Government bonds / securities. \n\nIn all the general business working - interest rate on govt. bonds / securities are taken as rate of risk free return.
1071218
Depends on the complexity of your return.  I prefer the programs because it prints the forms out neatly and they have all the forms I need.  And they do all the calculations!
482769
That's because monetary policy is far more flexible : \n1. u don't need to enact laws to change monetary policy\n2. the impact of rate hikes or rate lowering spreads wider than tax policy
786480
In the U S,  tax rates on long term gains are about 1/2 thoses of short term gains.  \n\nThe longer you hold a stock, that is increasing its earnings, the longer you can hopefully accumulate capital gains without paying any taxes on those gains and the longer you will accumulate gains.  \n\nAn example:   one share of MMM purchased on Jan 2, 1970 at an adjusted cost of $2.18 is now worth $79.19,  a 36x increase in 36 years.   The dividend today is a $1.84. That is almost as much dividend as the value of the original purchase.  Of course, putting all this in perspective, today a dollar is worth about $0.25 in 1970 values.
546288
Dividend Option gives you timely dividends (depending on fund manager when he feels it right), so you get some amount back....it has two options; re-investment and pay out...with re-investment you can reinvest the money and get some more units and in payout you get money as dividend.\n\nIn Growth option your NAV goes on increasing, as no dividend is declared.\n\nPast Records have shown that Growth options is better if you invest in equity and that for a longer period of time.
25691
As interest rates rise, so does the cost of capital. Therefore (eventually) labor becomes cheaper than capital, and capital improvements decline until the reverse is true i.e. falling interest rates. If you are an Indian firm that manufactures products for an American company, then this will harm Indian industry (but only to a degree, as even in a time of rising interest rates Indian labor is still cheaper than American labor). For Indian manufacturers producing machinery, this is not good news, since the cost of capital will not be exceptionally less expensive than labor.
139247
efficient capital market allows more money to be invested, which means more goods and services produced, which means lower prices. \n\nyou get more investment b/c efficient market has zero gap between the rate that users of capital pay, and the rate that owners of capital receive. In real world, this gap is non-zero, so less capital is supplied to the market; and less capital is demanded.