Finance 3.0 - Social Network for Finance
Smart financial thinking
-
sergei
- saransk
- Russian Federation
- assistent professor
- Share
- Share on Twitter
- Share on Facebook
- Blog Posts
- Discussions (53)
- Events
- Groups
- Charts
- Chart Portfolios
- Videos
- sergei's Apps (1)
sergei's Discussions
Does uncertainty resolution matter?
Replied 6 hours ago
Does uncertainty resolution matter?
Replied 6 hours ago
sergei's Page
Gifts Received
sergei has not received any gifts yet
Latest Activity
Possibly, but I think you are right the way you set the question up.... not all comments have stuck rigorously to the requirement that all moments of all risk variables are equivalent in the problem!!!
Once everything but time is held constant, its…
The projects with equal IRRs may differ in risk. You should use 'IRR-CoE' spread to come at equal NPVs.
I agree. But... may be there are also other advantages or considerations?
The key to answering your question lies here. NPV is not the end of the story. There is also implicit (unstated) option value at work here. The option the reinvest in year five is more valuable than the option to reinvest in year seven.... so we pre…
I wish to discuss the problem of uncertainty resolution in investment analysis and valuation. I believe that under the assumption of constant investment opportunities, the pattern of uncertainty resolution (early resolution of uncertainty vs. remote…
Optiona A: A 10% IRR project over 5 years.
Option B: A 10% IRR project of 1 year. Ability to invest in newer projects after that.
Both with same NPV over 5 years.
I may prefer A, if the risk of finding subsequent newer projects with IRR = > 10% is h…
To some extent I agree with you. However, apart from this, we need consider additional considerations about preferences for early uncertainty resolution.
To my mind, after the uncertainty is resolved, the risk diminishes and the firm improves credit…
The discount rate is different each years depending on the risk of future CF in each year. Assuming NPV is same, 3 and 7 years, the 3 year project will be preferred, because even though discount rate is may be higher for the 7 year project, there re…
Profile Information
- Profession:
- education
- Current Role:
- assistent professor
- Education:
- public administration
- Current Location:
- Mordovia, Saransk
- Interested In:
- career opportunities, consulting offers, expertise requests, getting back in touch
Comment Wall (3 comments)
- At 5:20am on August 5, 2009,
bola awojobi said… - Grateful send as an attachment your model to baawojobi@yahoo.com. I would add my review promptly.
- At 7:22am on April 11, 2009,
Mike Miller said…
- Great - waiting to hear what you think :)
My portfolio:
http://www.marketguru.com/miller
- At 2:27pm on December 23, 2008,
Sachidanand (Sacha) Singh said… - Thank you, Sergei, for accepting as a connection
Sacha
Sign in
Badge
Continuing Education
 |
Accounting |
 |
Banking Regulations |
 |
Certification Training |
 |
Commercial Bank Management |
 |
Corporate Finance & Valuation |
 |
Treasury Management |
 |
Credit Risk Management |
 |
Financial Derivatives |
 |
Financial Institution Management |
 |
Financial Markets |
 |
Financial Modeling |
 |
Financial Planning |
 |
Market Risk Management |
 |
Operational Risk Management |
 |
Operations & Compliance |
 |
Quantitative Analysis |
 |
Strategic Financial Management |
Newsletter
Linkedin
RSS
Facebook
Widgets
Twitter© 2010 Created by Finance 3.0
