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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › probability analysis
Sir, I have a doubt in probability analysis. After the calculation of sum of px, NPV is calculated on 2 figures. One is the sum of px and which is the other one?
I hope my qns is clear enough.
I am sorry but I am not clear what you are asking.
Are you talking about calculating the expected NPV? If so, then we multiply each NPV by its probability and add up the totals to get the expected NPV.
It is better if you refer to a specific question and I will then understand what you are asking and be able to give you a proper answer.
Ok. Thanks so much Sir.
You are welcome 🙂