MCS 2100 Chapter Notes - Chapter 1: Current Asset, Opportunity Cost, Estate Planning

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 2100
• Professor: May Aung

Document Summary

Opportunity cost (trade-off) - what you give up by making a choice; can be measured in money or time; nancial opportunity costs include interest, liquidity, and safety of investments. Time value of money - the increases in an amount of money as a result of interest earned; is con sided every time you spend, save, invest, or borrow: evaluating risk - types of risks. Short-term goals - achieved within the next year or so. Long-term goals - more than 5 years; setting short-term/intermediate goals is basis for success of long-term goals. Goal frequency - vacations may be set annually, while a car occurs less frequently. Tuesday, december 11, 2018: goals for different nancial needs. Consumable-product goals - occur on periodic basis and involve items that are used up quickly like clothes. Durable-product goals - involve infrequently purchased, expensive items like cars; consist of tangible items. Intangible-purchase goals - may relate to personal relationships, health, education, and leisure: life situation.