[Latest News][6]

Affiliate Marketing Guides
Agriculture Business Ideas
Amazon Online Store Tips
Banking & Finance Tips
Blogging & Webmaster Guides
Bulk SMS Short Code Guides
Computer & IT Business Ideas
Education Business Ideas
Entrepreneurship Tips & Freebies
Facebook Autopilot & Tips
Fashion & Decoration Ideas
Financial Calculators
Fiverr Income Guides
Free SMS Text Messages
Google Adsense Tips
Health Business Opportunities
Inspirational Poems & Literature
Insurance & Risk Management
Job Search Tips
Mobile Phone Tips & Business
Motivational Quotes & Tips
Oil & Gas Business Ideas
Online Business Guides
Online Importation Business Guides
Small Scale Business Ideas
Social Media Income Guides
Start-Up Business Ideas
Transportation & Haulage Ideas
Web & Graphic Designing Ideas
Work-At-Home Business Ideas

Decision tree analysis For Risk And Uncertainty In Capital Budgeting

Decision tree analysis For Risk And Uncertainty In Capital Budgeting:

In the modern business world, putting the investments are become more complex and taking decisions in the risky situations. So, the decision tree analysis helpful for taking risky and complex decisions, because it consider all the possible event’s and each possible events are assigned with the probability.

finance
[Post Image Courtesy of Suphakit73 at FreeDigitalPhotos.net]

Construction of Decision Tree:

1. Defined the problem

2. Evaluate the different alternatives

3. Indicating the decision points

4. Assign the probabilities of the monetary values

5. Analysis the alternatives.

Accept/Reject criteria Decision tree analysis For Risk And Uncertainty In Capital Budgeting:

If the net present values are in positive the project may be accepted otherwise it is rejected.

About Author Mohamed Abu 'l-Gharaniq

when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries.

No comments:

Post a Comment

Do you have any reasonable comments for this post ? Please feel free to drop them below using the comment box. We will moderate and publish them as soon as possible. Cheers !

Start typing and press Enter to search