I really don't like building in the risk to the NPV percentage used. What you really should do is use the risk free discount rate and model the risk into the future income and expenses. Each factor that can effect the cashflow has a different risk and you only get an accurate NPV from modelling all this. This approach also avoids arguments over what discount rate should be used - if I say we should use 8% and you say 10% how can we come to any agreement, but if I say the risk of 25% or greater cost overrun on the build is 30% then we have something concrete to discuss.
All of this is irrelevant to WAF as the current SP is not being driven by the project fundementals.
Last Change for Cheapies - about to close gap?, page-15
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Last
$1.52 |
Change
-0.010(0.66%) |
Mkt cap ! $1.866B | |||
| Open | High | Low | Value | Volume |
| $1.54 | $1.55 | $1.51 | $2.794M | 1.834M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 1 | $1.52 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.52 | 27036 | 2 |
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| Last trade - 16.10pm 28/11/2024 (20 minute delay) ? |
| WAF (ASX) Chart |
