Tag: "Scenario analysis"
Planning under Uncertainty
Let’s say that the board have sketched a future desired state (value of equity) of the company and that you are left to find if it is possible to get there and if so – the road to take.
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Public Works Projects
The solution to all this is to establish a proper simulation model for every large project and do the Monte Carlo simulation necessary to establish the total cost distribution, and then calculate the risks involved.
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The fallacies of Scenario analysis
Scenario analysis is often used in company valuation – with high, low and most likely scenarios to estimate the value range and expected value – but do they give correct answers?
