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Project Duration

TTim2y ago
Hi John, Enjoying your lectures on valuation of debt finance, and duration! On project duration, is there also modified project duration? i.e we divide the project duration by the cost of capital to work out how much absolute change in project value can be affected 1% increase in the cost of capital? Perhaps it is not in the syllabus but just wanted to see if this would also make sense. Thanks a lot! Regards, Tim
John MoffatJohn MoffatTutor2y ago#1
Yes it is in the syllabus and I do explain it in the notes and lectures :-)
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