Running head: RISK ANALYSIS ON INVESTMENT DECISION
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Risk Analysis on Investment Decision
July 20, 2009
This paper will discuss the NVP for the two projects being considered by SAI. Many considerations will have to be taken into account including the volume, price and marketing costs as well as the approach taken by the financial analyst. This paper will also discuss capital expenditure and the effects on the NVP of staggering this cost. Opportunity cost, hidden costs, and terminal value will also weigh in on the decision of which project would best serve SAI. Finally this paper will address the risks of each project by taking into account the risk premium. The PI and the annuity of the proposals will also be calculated and be considered before making a decision.
The examination of the assumptions of the market research report (MRR) for Dig-image’s performance over the next five years reveals a more......
Approximate Word Count: 986
Approximate Pages: 4 (260 words per double-spaced page)