Question: Provide an example of investing in something that will hopefully realize future profits (incorporating alternative energy sources as you build your new home; buying a hybrid vehicle for your next car; switching to a “whole food†diet rather than buying pre-packaged foods). Give enough information in your example so that your peers can address the following questions in their replies.
1. How did the example illustrate the time value of money concept?
2. How was the Net Present Value concept illustrated?
3. How was the payback period determined?