Ca final - sfm - practice manual - capital budgeting chapter
Narendra JR (Professional) (124 Points)
31 July 2016Narendra JR (Professional) (124 Points)
31 July 2016
CA. Sandeep Kumawat
(CA)
(341 Points)
Replied 01 August 2016
So when you will draw decision tree for 1 to 3 year your net cash flow in different option will be (5500-4600)=900, (6500-4600)=1900, (4500-4600)=-100.
Basically it is net cashflow on each leg with 0.125 probability.