Dealing with Uncertainty - Introduction
9 important questions on Dealing with Uncertainty - Introduction
What is meant with a decision under risk?
What is meant with a decision under uncertainty?
What is meant with sensitivity? (capital investment decision)
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What are [4] sources of uncertainty?
- The inaccuracy of the cash-flow estimates used in the study;
- Type of business involved in relation to the future health of the economy;
- Type of physical plant and equipment involved;
- Length of the study period;
What is meant with the inaccuracy of the cash-flow estimates used in the study (considering uncertainty)?
How is uncertainty in capital investment requirements often reflected?
What is meant with the type of business involved in relation to the future health of the economy (in uncertainty)?
What is meant with the type of physical plant and equipment involved (in uncertainty)?
What is meant with the length of a study period (under uncertainty)?
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