2 ms·
It's about the time value of money. If you give me 100, and I make a profit for you of $0.50 a year on it, it's profit right? But this other investment, invest
by analognoise 8y ago
It's about the time value of money.
If you give me 100, and I make a profit for you of $0.50 a year on it, it's profit right? But this other investment, investment B, makes $5/year. Which one are you going to put your money in?
Investment B every time.
The companies don't want profit, they want the MOST profit - especially because if they don't choose wisely, they'll find it difficult or impossible to seek extra financing.