Net Present Value and Investment Decisions

Article on Net Present Value and Investment Decisions
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Article on Net Present Value and Investment Decisions
John Wasik’s article “The Biggest Financial Asset in Your Portfolio Is You” is an exceptional compilation that describes human capital as the most important asset that an individual can ever have. However, the article describes this asset as a premise that most financial advisors, adherents, enthusiasts and critics give minimal focus in defining financial subjects. A human being has the unending chances of changing their careers to enhance the importance of their human capital. They can choose to pursue a different degree from the one that they have attained to acquire a different job (Wasik, 2013). A person has no control over the increase in share prices in varied financial instruments such as equity securities, commodities and real estate among others.
An illustrative description of human capital is that it is the “net present value” of lifetime earnings. It is numerically the amount that a person earns as their contribution to the labor market in their capacity as professionals (Wasik, 2013). The article thereby promotes the need to ensure an individual balances their human capital to e...