1. Risk Analysis, Real Options, and Capital Budgeting 2. Chapter Outline 8.1 Sensitivity Analysis, Scenario Analysis, and Break-Even Analysis 8.2 Monte Carlo Simulation 8.3…

CHAPTER 3 How to Calculate Present Values Answers to Practice Questions 1. a. b. c. d. PV = $100 × 0.905 = $90.50 PV = $100 × 0.295 = $29.50 PV = $100 × 0.035 = $ 3.50…

1. Risk Analysis, Real Options, and Capital Budgeting 2. Chapter Outline 8.1 Sensitivity Analysis, Scenario Analysis, and Break-Even Analysis 8.2 Monte Carlo Simulation 8.3…

1. Project Analysis Session 5 2. Investment Process STAGE 1: THE CAPITAL BUDGETSTAGE 2: PROJECT AUTHORIZATIONS PROBLEMS AND SOME SOLUTIONS Ensuring that Forecasts Are…

Slide 1Semih Yildirim ADMS 3530 9-1 Chapter 9 Project Analysis Chapter Outline  How Firms Organize the Investment Process  Some “What If” Questions  Break-Even…

Ch.8 Risk Analysis, Real Options, and Capital Budgeting Financial Management Ch.8 Real-world practitioners often wonder how much confidence they should place in NPV calculations.…

Chapter 9 Project Analysis Chapter Outline How Firms Organize the Investment Process Some “What If” Questions Break-Even Analysis Real Options and the Value of Flexibility…

© 2012 McGraw-Hill Ryerson Limited Chapter 8 -* The Investment Timing Decision Sometimes you have the ability to defer an investment and select a time that is more ideal…

Chapter Nine Project Analysis and Evaluation Chapter Organisation 9.1 Evaluating NPV Estimates 9.2 Scenario and Other ‘What If’ Analysis 9.3 Break-even Analysis 9.4 Operating…