kamara5

Kiakaha Wrote:
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> that seems pretty illogical to me -- ie if you're
> aware there's a substantial chance your investment
> will end up with a nil return, and you don't
> include that in your calculation, then your NPV is
> totally inaccurate

Well the question I am talking about is from Schweser mock and it's not really true that they have not considered probabilities rather return was given in the question with probabilities already considered(which was hard to understand from the language of the question), and explanation was, return given should be discounted and initially outlay should be subtracted from the discounted value to compute NPV.