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Frequently asked questions

Posted: Thu Jan 23, 2025 6:52 am
by subornaakter40
Remember that even the most thorough analysis does not guarantee success, but it significantly increases the chances of achieving your goals.

What formula is used to calculate NPV?
NPV = Σ (CFt / (1+r)^t) - I0, where:
CFt - cash flow in period t
r - discount rate
t - time period
I0 - initial investment costs

This formula allows you to determine canada mobile phone numbers database the present value of future cash flows and compare them with the initial investment.

What should be taken into account when analyzing the commercial viability of a project?
When analyzing, the following should be considered:

Projected income and expenses

Time value of money

Risks and uncertainties

Alternative uses of resources

Impact of the project on other aspects of the business

Macroeconomic factors

How to evaluate the effectiveness of a project in the early stages when there is little data?
In the early stages you can:

Use data from similar projects

Conduct expert assessments

Apply scenario analysis methods

Use simplified models with subsequent refinement

Focus on key success factors and risks

What methods are used to take risks into account when evaluating performance?
Key risk accounting methods include:

Adjustment of the discount rate

Sensitivity analysis

Scenario Method

Monte Carlo Method

Decision tree

Real Options