*Note : I am going to add my Corporate Strategy Assigment when i was at the university about Financial Investment Methods. Enjoy it :)
PART -16
PART -16
8 TAKE RISK INTO ACCOUNT
IN PROJECTS
While the
investors try to decide project appraisals, they consider the inputs values and
discounted rate to accept or else refuse the projects. However, the most
important point is to think NPV if positive or negative, correspondingly.
After then,
investors have to find the highest NPV to decide the best option, if NPV is
positive.
Nevertheless,
there is always a risk at the application. For this reason, they have to
consider the criteria of investment by distributing NPV respectively.
There are
two main topics to check while doing risk analysis. First, combination of NPV.
Second, selecting the discount rate then, use the criteria.
No comments:
Post a Comment