8.5 Financial Concepts and Methods of Appraisal (a)(Duplicate)

By the end of this lesson you will have learned about: Money and time Methods of investment appraisal Total cost of ownership (Accounting rate of return – ARR) optional Payback period     1. Money and time The future is uncertain One of the more difficult aspects in understanding the economic implications of decisions is […]

Footnotes

  1. Swan, J. 2005. Practical Financial Modelling. CIMA Publishing.
  2. Failure to do this in models used to assess the risks of complex financial products are considered to have been a contributory factor to the global financial crisis.
  3. For an explanation of the Monte Carlo method see: https://en.wikipedia.org/wiki/Monte_Carlo_method
  4. Empire State Building website: https://www.esbnyc.com/esb-sustainability/project
Lesson tags: capital cost, CarbonLite Retrofit, discounted cash flow, internal rate of return, marginal cost, net annual cost, net present value, sensitivity analysis
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