Ch 12

Chapter - 12 Risk Analysis in Capital Budgeting

Chapter Objectives ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Nature of Risk ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Techniques for Risk Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Probability ,[object Object],[object Object],[object Object],[object Object],[object Object]

Assigning Probability ,[object Object],[object Object]

Expected Net Present Value ,[object Object],[object Object]

Variance or Standard Deviation ,[object Object],[object Object],[object Object]

Coefficient of Variation ,[object Object],[object Object]

Coefficient of Variation ,[object Object],[object Object],[object Object],[object Object]

Risk Analysis in Practice ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Payback ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Risk-Adjusted Discount Rate ,[object Object],[object Object]

Evaluation of Risk-adjusted Discount Rate ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Certainty—Equivalent ,[object Object],[object Object],[object Object],[object Object]

Evaluation of Certainty—Equivalent ,[object Object],[object Object],[object Object],[object Object]

Risk-adjusted Discount Rate Vs. Certainty–Equivalent ,[object Object],[object Object]

Sensitivity Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

DCF Break-even Analysis ,[object Object],[object Object],[object Object]

Pros and Cons of Sensitivity Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Scenario Analysis ,[object Object],[object Object]

Simulation Analysis ,[object Object],[object Object],[object Object],[object Object],[object Object]

Shortcomings ,[object Object],[object Object],[object Object]

Decision Trees for Sequential Investment Decisions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Usefulness of Decision Tree Approach ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Utility Theory and Capital Budgeting ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

[object Object],[object Object],[object Object]

Benefits and Limitations of Utility Theory ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Ch 12

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (20)

Similar to Ch 12

Similar to Ch 12 (20)

More from kpserver

More from kpserver (15)

Recently uploaded

Recently uploaded (20)

Ch 12