[Maja]

Nie it is perfectly clear. Thank you.

[Maja]

Thank you but actually I tried to compare example 1 from article dealing with option to delay to exam question Digunder from December 2007 also dealing with option to delay a Project. In the answer in my BPp book they say that the overall value of the Project is its NPV plus the option to delay.

[Maja]

Thank you. Could you please explain what is the difference between this example where value of the project is the value of the option to delay and Digunder Dec 07 where overall Value of the Project is Project NPV plus the value of the delay option?

[Maja]

Yes, with the share buy-back amount. but I meant adjustments to earnings like property rent foregone and return on reinvested funds. They impact earnings for the year, so why aren’t reflected in the R/E amount?

[Maja]

Dear Mr Moffat,
J have a question to part a of the question. Why adjusted earnigs for 20X8 figure doesn’t affect Retained Earnigs Figure in SOFP?

Thank you very much.

[Author]

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