Brainstorming groups may meet several times before the estimates of the

# Brainstorming groups may meet several times before

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Brainstorming groups may meet several times before the estimates of the variables are finalized. b. Expert Judgement Expert judgement uses experienced individuals who are aware of the factors causing the investment potential to vary. This is the quickest and easiest way of identifying risk, but considerable care must be given to choosing the expert. Expert Judgment is use for situations which require recourse to expert judgment by completing, validating, interpreting and integrating existing data, assessing the impact of a change, predicting the occurrence of future events and the consequences of a decision, determining the present state of knowledge in one field, providing the elements needed for decision-making in the presence of several options. Procedures: 1. Select and confirm activity to be analyzed; 2. Create a list of statements/questions; 3. Select the experts; 4. Have the experts give their ratings/answers/etc.; 5. Make a report - send it out to everyone; 6. Have the experts revise their answers; 7. Make the second report. c. Assumption Analysis Assumption analysis requires the detailed questioning of each assumption. This analysis requires each assumption to be modified in such a way that those circumstances that are disadvantageous to the investment will be evaluated. The effects of the changes in assumptions are then used as part of the range of variable specification.
2. Draw Influence diagrams? 3. Based on the data above, I can conclude that if all the most unprofitable estimates occur, such as maximum investment costs, lowest benefits and highest capital costs, investment is still expected to produce an IRR of 16%. On the positive side, if investment remains low and the highest benefit is achieved, investment can produce returns as high as 24%.

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• Spring '20
• 16%, 24%, c. Assumption Analysis

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