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Investment Appraisal Under Uncertainty Expected Values (example 2)
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Thank you Open Tuition. Good delivery on the lecture.
thank you.
It is mentioned in Example 2: “and expects fixed overheads to increase by $140,000 per year”
But in video it is 140000 each year we are deducting from contribution. Why is that? Should not we deduct 140000 year1, 280000 year 2 and so on.??
@Atif Munir, No. If it meant that it would have said “…to increase by $140,000 in each subsequent year”
@johnmoffat, If it says p.a, will we do the same as this example?
What words will the examiner use if we are expected to inflate each year?
Thank you
@abeers, Yes – if it says p.a. then you would do the same as in this example.
If he wanted you to increase it each year he would say ‘….increase by 140,000 in each subsequent year’.
@johnmoffat, Yaay! Thanks (^_^)
@johnmoffat, You are welcome
Thanks a mil.
it should be OK now,
It says this lecture is on Expected values but plays capital rationing. Some problem or is it me?
Good lecture for EV, but i dont understand this Simulation thing. Where can i find lectures regarding that?