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24 July, UGBA 103 - Меня зовут Тролль, Диматролль
July 24th, 2003
09:19 am


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24 July, UGBA 103
Ok? Assume some reasonable R - 5%. Which project should you take? ... Work out whether it is more or less how much you are paying ... But ... if you work out this rule ... right? Now in fairness, noone uses just this rule by itself ... *student asks a silly question* mumble mumble mumble What's wrong with doing that? I have a thousand dollars with me today and I am thinking to make an investment. ... And this other guy says - put the money in my shop, I make these weird things called "plastic". And noone knows what "plastic" is ... until you get the NPV. Once you get the NPV of the project, and this is truly important ... You've reduced all of that down to one metric - a number, the net present value number ... by the same token a long lived project is not more valuable than a short term project ... don't jump and say "they are not compartable" because they are ... this solution gives you one thousand dollars in your pocket today and another solution gives you five thousand dollars in your pocket today ... so the time length no longer matters ... let me repeat - the NPV rule comes from a simple intuition ... and make this gazzilion dollars when it comes in ... that's the Net Present Value ... so the...

And my laptop ran out of batteries.

Current Mood: blankblank
Current Music: Prof. Mazumdar rambling on and on....

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[User Picture]
Date:July 24th, 2003 01:29 pm (UTC)
I felt a funeral in my brain reading that.
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