Join Rudolph Rosenberg for an in-depth discussion in this video Example two: Hire administrative support, part of Making Investment Decisions.
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…The second example is about hiring administrative support.…Showing how it it can be a positive option and how to calculate it.…So the situation is the following: most small companies start with as little…as one person in it, that person being the founder of the company.…At first, if resources are limited, as is most of the time…the case, the founder of the company has to take on all…the responsibilities of the company.…That includes a high level of administrative tasks.…
Those tasks include answering the phone, answering customer emails,…opening mail, sorting documents, and filing documents in cabinets.…It includes as well, an infinite number of other tasks that are not per…se the core activity of the company,…such as selling products, incurring revenue and profits.…As success…comes, then comes a point when the founder needs to…decide how to best invest the profits of the company.…The options available to him could be for example, to choose from…increasing his salary, hiring sales staff, investing in infrastructure and so on.…
This course teaches the net present value (NPV) methodology, an investment evaluation formula used by countless publicly traded companies and financial analysts, in a way that makes it accessible and applicable to you—no finance background required. Rudolph Rosenberg explains what investments are, how they are measured, and what makes a good investment. Then he explores the NPV formula in depth, showing you how to evaluate your cash flows, choose a rate of return, and assess the risk of a particular investment. This all culminates in a look at how the principles of investment apply to three real-life scenarios that any individual or company might encounter.
- What is an investment?
- Understanding ROI
- What makes a good investment?
- Using the NPV formula
- Assessing risk
- Applying NPV to real-life situations