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Chapter IV  INVESTMENT RISK ANALYSIS
[object Object],[object Object],[object Object],[object Object],Time Value of Money
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Time Value of Money
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Net Present Value of an Investment
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Net Present Value of an Investment
[object Object],[object Object],[object Object],[object Object],Are you RISK Averse?
[object Object],[object Object],[object Object],[object Object],RISK and diversification Investment Weather probability Return on investment Outcome Ice cream stand Sun  0.5 60% 30% Rain 0.5 -20% -10% 20% Umbrela shop Sun  0.5 -30% -15% Rain 0.5 50% 20% 10% Portfolio: Sun 0.5 15% 7.5% Stand and umbrela shop Rain 0.5 15% 7.5% 15%
[object Object],[object Object],[object Object],[object Object],RISK and diversification
[object Object],[object Object],[object Object],[object Object],Estimating Investment RISK
[object Object],[object Object],[object Object],[object Object],Estimating Investment RISK A 1% increase in: Increase NPV by: % increase Sales growth rate 2240 10.5% Operating profit margin 2462 11.6% Capital investment -1249 -5.9% Working capital investment -1143 -5.4% Discount rate -1996 -9.4%

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Mmi finance 4

  • 1. Chapter IV INVESTMENT RISK ANALYSIS
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10.

Hinweis der Redaktion

  1. Answer: NO, the PV of 91.000 EUR next year is 82.727 today, less than 85.000