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Hi Sir.
I would want to understand what does it mean by, “reservations” one can make on a investment?
Like in the FM opentuition notes, example 1, (machine with estimated cost of $80000)…
The followed up question (example 2)said; “what reservation have you made about your investment decision?”
What do you look at when coming up/stating reservations on Investment?
I explain this in my lectures working through this example.
There is no point in using the lecture notes without watching the lectures that go with them. They are only lecture notes and it is in the lectures that I work through the examples and explain and expand on the notes.
I was watching lecture together with the notes, that’s where i saw you how gave reservations.
Thus i asked what do you look at /consider when stating reservations on the investment
But I discuss the reservations in the lecture. The reservations are the reasons why you can never be certain of the results of the appraisal (for example, the cash flows used are only estimates and if they turn out to be different from those estimated then the NPV will be different and we could end up having made the wrong decision).
i saw them in the lecture but i never understood them. thank you for being so kind prof.
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