Investment appraisal and Transposition error: Difference between pages

Revision as of 13:07, 14 August 2013

1. A simple error of data entry when two digits in a number are reversed (transposed).

When two adjacent digits are transposed the error will always be divisible by 9.

For example: If 3,460 should be 3,640 the difference is 180 (3,640-3,460=180) 180/9 = 20.

2. Similar errors with non-numerical data. For example ABC entered wrongly as ACB.

@@ Line 1: / Line 1: @@
 .
+A simple error of data entry when two digits in a number are reversed (transposed).
-Investment appraisal is the process of determining whether an expected return is sufficient to justify the investment required to achieve that return, given the risk and the time delay associated with the expected return.
+When two adjacent digits are transposed the error will always be divisible by 9.
+For example:
+If 3,460 should be 3,640
+the difference is 180 (3,640-3,460=180)
+/9 = 20.
 .
+Similar errors with non-numerical data.
-Investment appraisal can also refer to a more comprehensive process of analysis and decision making about potential investments including - but broader than - the quantified analysis in 1. above.
+For example ABC entered wrongly as ACB.
 == See also ==
-* [[Discounted cash flow]]
+* [[Double counting]]
-* [[Internal rate of return]]
-* [[Net present value]]
-* [[Payback]]
-* [[Present value]]
-* [[Return]]
-* [[Return on capital employed]]
-* [[Time value of money]]
-[[Category:Corporate_finance]]