|
- UID
- 223360
- 帖子
- 220
- 主题
- 60
- 注册时间
- 2011-7-11
- 最后登录
- 2014-8-2
|
Mistake in schweser's notes alternative investment
Q, venture capital, initial investment 1 million. failure rate over next 4 years, .10, .15, .20, .15
expected payoff is 5 million in 4 years, cost of capital is 10% (SS18, reading 73, alternative investment question 11, 2009 shweser )
Whats the expected NPV?
A: 366,067
B: 775,834
C: 698,057
my answer: suvival rate=0.9*0.85*0.8*0.85=0.52. failure rate=0.48
NPV=weighted average of two possiblities
NPV= 0.52* 5,000,000/1.1^4 (~1.7 million) 0.48*1000,000
shweser’s answer
NPV= 0.52* 5,000,000/1.1^4 (~1.7 million) 1000,000=0.7 mil–answer B
this cant be right. |
|
发表于 2013-4-10 18:01
|