00:02 Discussion on real options in finance 02:14 Understanding the difference between financial and non-financial items 08:19 Real options are related to project investments. 10:57 Discussing initial investment and project cash flows. 16:02 Understanding NPV and decision making for project acceptance 19:02 Considering real options to maximize value 23:49 Exploring options for future business expansion 26:50 Considering business expansion and risks 31:58 Explaining the concept of additional NPV and probability 34:20 Real options add value to NPV through expansion options. 39:15 Explaining the concept of real options in project decision-making 41:04 Real options in capital budgeting 46:33 Negative NPV at 4.70%, not accepting project 48:40 Discussion on expansion option and future investments 53:36 Calculate NPV in different scenarios 56:43 Discussing the concept of Real Options and its impact on NPV calculation 1:01:11 Understanding the exercise expansion option in real options 1:03:55 Understanding the concept of real options in financial decision-making 1:08:36 Explanation of growth options in Real Options 1:12:25 Discussing different scenarios and calculating NPV 1:18:09 Calculating Net Present Value (NPV) in various scenarios 1:21:21 Calculation of Expected Cash Flow 1:27:33 Real options allow selling project after two years 1:31:28 Considering real options for cash flow evaluation 1:37:10 Understanding the concept of real options in relation to future cash flows 1:40:37 Understanding the value of endowment option 1:46:44 Explaining Real Options with NPV and Endowment 1:49:41 Explaining the concept of endowment option and its impact on NPV 1:54:35 Real Options in Derivatives Amendments 1:56:29 The PVO proposal and market conditions 2:00:55 Using Risk Neutral Method for Valuation 2:03:29 Discussion on probability and stock values 2:07:50 Understanding put options and their value calculation 2:10:16 Calculating the value of the end option using the risk-free rate. 2:16:05 Understanding the difference between two options. 2:18:31 Discussing the present value of new proposal 2:23:12 Calculating probabilities and outcomes for derivatives 2:26:22 Calculating the value of a call option 2:31:45 Analyzing the impact of government policies on investment decisions 2:34:51 Analyzing project value based on probabilities and cash flows. 2:40:09 Discussing the NPV and investment decision. 2:42:47 Discussing the concept of Real Options in NPV analysis. 2:48:31 Analyzing NPV and future value calculation 2:51:09 Evaluate project acceptance based on timing options 2:56:24 Discussing future savings and probabilities in financial decision-making 2:58:31 Consider the current value and potential future values. 3:03:35 Using Real Options for Expected NPV calculation 3:06:46 Binary model and risk-free rate usage in option valuation 3:11:53 The video discusses amendments to derivatives and real options 3:13:53 Analyzing costs and benefits of producing 10 vs 15 units 3:18:23 Analyzing real options for immediate construction vs. waiting a year 3:20:43 Real options allow for flexibility in decision-making. 3:26:40 Calculating NPV and considering probabilities for financial decisions 3:29:30 Making decisions based on probabilities for better profits 3:34:05 Consider the impact of waiting on probability and market value. 3:35:50 Importance of keeping a plot vacant for real options
In the last question, humne rent ka PV kyu nhi kiya Agar hum aj building construct krege, aur building ko ek saal baad bechege, to hum ek saal ka rent bhi to kamayege, to rent ka PV bhi to hona chahiye while calculating NPV of the project.
I think because rent is a p/l item toh usko assume kia months me mila and not cumulatively at 1st year end.😢 yeh Icai se assumption ke logic hote Kam hai aur banane zyada padte hai so just remember that rent to p/l item Maan lia hai recurring income type. Also in final npv calculation they did not consider rent - I think because dono hi case me amount same tha toh impact nullify ho jata. But fir probability me kyu lia I don't understand.
@jitendrabhandari5295 I think in last question last part of solution is done with a view that Ramesh will start construction after 1 year and will sold apartment. SO since apartment is being constructed after 1 year there will be no rental income
Sir I have taken your fast track. And me thanks karna chahti hu .Isse pehle sfm itna achee se samja hi nahi tha. Bar bar formula dekhna padta tha. And bar bar sum wrong hota tha. But now formula ki need hi nahi lagti . Enjoying sfm now.
Sir 1 ques about forex Icai ne ek hi question me koi rate 3 decimal places tak liya hai and koi rate 2 decimal places tak liya hai and usse answer me fark hai so us question ko icai galat to nahi karega na agar hum apni marzi se har rate me 2 ya har rate me 3 decimal places len?
00:02 Discussion on real options in finance
02:14 Understanding the difference between financial and non-financial items
08:19 Real options are related to project investments.
10:57 Discussing initial investment and project cash flows.
16:02 Understanding NPV and decision making for project acceptance
19:02 Considering real options to maximize value
23:49 Exploring options for future business expansion
26:50 Considering business expansion and risks
31:58 Explaining the concept of additional NPV and probability
34:20 Real options add value to NPV through expansion options.
39:15 Explaining the concept of real options in project decision-making
41:04 Real options in capital budgeting
46:33 Negative NPV at 4.70%, not accepting project
48:40 Discussion on expansion option and future investments
53:36 Calculate NPV in different scenarios
56:43 Discussing the concept of Real Options and its impact on NPV calculation
1:01:11 Understanding the exercise expansion option in real options
1:03:55 Understanding the concept of real options in financial decision-making
1:08:36 Explanation of growth options in Real Options
1:12:25 Discussing different scenarios and calculating NPV
1:18:09 Calculating Net Present Value (NPV) in various scenarios
1:21:21 Calculation of Expected Cash Flow
1:27:33 Real options allow selling project after two years
1:31:28 Considering real options for cash flow evaluation
1:37:10 Understanding the concept of real options in relation to future cash flows
1:40:37 Understanding the value of endowment option
1:46:44 Explaining Real Options with NPV and Endowment
1:49:41 Explaining the concept of endowment option and its impact on NPV
1:54:35 Real Options in Derivatives Amendments
1:56:29 The PVO proposal and market conditions
2:00:55 Using Risk Neutral Method for Valuation
2:03:29 Discussion on probability and stock values
2:07:50 Understanding put options and their value calculation
2:10:16 Calculating the value of the end option using the risk-free rate.
2:16:05 Understanding the difference between two options.
2:18:31 Discussing the present value of new proposal
2:23:12 Calculating probabilities and outcomes for derivatives
2:26:22 Calculating the value of a call option
2:31:45 Analyzing the impact of government policies on investment decisions
2:34:51 Analyzing project value based on probabilities and cash flows.
2:40:09 Discussing the NPV and investment decision.
2:42:47 Discussing the concept of Real Options in NPV analysis.
2:48:31 Analyzing NPV and future value calculation
2:51:09 Evaluate project acceptance based on timing options
2:56:24 Discussing future savings and probabilities in financial decision-making
2:58:31 Consider the current value and potential future values.
3:03:35 Using Real Options for Expected NPV calculation
3:06:46 Binary model and risk-free rate usage in option valuation
3:11:53 The video discusses amendments to derivatives and real options
3:13:53 Analyzing costs and benefits of producing 10 vs 15 units
3:18:23 Analyzing real options for immediate construction vs. waiting a year
3:20:43 Real options allow for flexibility in decision-making.
3:26:40 Calculating NPV and considering probabilities for financial decisions
3:29:30 Making decisions based on probabilities for better profits
3:34:05 Consider the impact of waiting on probability and market value.
3:35:50 Importance of keeping a plot vacant for real options
Thank you
merlin AI hmm😄
38:33 recap of real option
1:51:54 recap of abandonment option
2:13:04 Question 41- IPL revision
3:12:13 - Adv Capital Budgeting question important.OLD PM ques)
1:54:50 illu 5 ipL
2:20:15 old pm Q
2:28:53 timing option concept
2:49:14 illu 6 MIS
3:12:27 non sm Q but imp
Sir best teaching te exerience...in depth knowledge and innocent style 😇
Illustration 5- 1:55:45
Q41- 2:20:32
Illustration 6- 2:49:39
Q6- 3:13:07
The most awaited video....
King 👑 is back. ♥
You r really so great nd way of ur teaching style is awesome ❤
In the last question, humne rent ka PV kyu nhi kiya
Agar hum aj building construct krege, aur building ko ek saal baad bechege, to hum ek saal ka rent bhi to kamayege, to rent ka PV bhi to hona chahiye while calculating NPV of the project.
I think because rent is a p/l item toh usko assume kia months me mila and not cumulatively at 1st year end.😢 yeh Icai se assumption ke logic hote Kam hai aur banane zyada padte hai so just remember that rent to p/l item Maan lia hai recurring income type.
Also in final npv calculation they did not consider rent - I think because dono hi case me amount same tha toh impact nullify ho jata.
But fir probability me kyu lia I don't understand.
@jitendrabhandari5295 I think in last question last part of solution is done with a view that Ramesh will start construction after 1 year and will sold apartment. SO since apartment is being constructed after 1 year there will be no rental income
Most awaited video thankyou😊😊
Sir ek doubt hai, 3:27:15 pe jab hum after 1 year ki values nikal rahe hai tab 91 and 75 ke saath 7 lakh ka rent kyu nahi consider kar rahe?
Same doubt.
Same doubt. Did you get the answer?
Superrb...thank you sir🙏
Thank you so much sir.. We admire you a lot sir..😊
Sir I have taken your fast track. And me thanks karna chahti hu .Isse pehle sfm itna achee se samja hi nahi tha. Bar bar formula dekhna padta tha. And bar bar sum wrong hota tha. But now formula ki need hi nahi lagti . Enjoying sfm now.
Thank you so much sir for your great efforts.
❤❤❤❤❤ thank you sir 🙏
Sir end wale question me (Ramesh house )rent wale amount ko npv calculation me add kyu nahi kia ? When we took that for probability calculation.
sir how to do real option through Black scholes model
Sir isme mine open wala question is missing
Please provide the question bank additional pages for this topic
Sir ish concept ka notes and questions kahan se milega
Thank you so much sir. ❤
Am I the only one who feels that this amendment is Adv Capital Budgeting in disguise?😂
Amazing lecture sir..
2:49:10 timing concept ques
2:30:00 MIs Ltd
My king 👑 is back ❤
Your king has cheated students of fastrack batch for may 24 by providing old recorded videos without any support by team
AFM ka jo batch hai fast track ka vo latest nahi hai ?
Hi sir, why we had not consireded rent
Question Time stamps:
Illustration 5- 1:55:45
Q41- 2:20:32
Illustration 6- 2:49:39
Q6- 3:13:07
Qn 41 of new qn bank pg 107 2:20:00
thank you so much sir
Osm
Jai mahakal ❤️❤️🚩
Sie institute ka ek illustration 4 in real option .. plz us solution me bsm formula alag kyon hai
Kinggg is back to support❤
After long time ❤❤❤
Sir 1 ques about forex
Icai ne ek hi question me koi rate 3 decimal places tak liya hai and koi rate 2 decimal places tak liya hai and usse answer me fark hai so us question ko icai galat to nahi karega na agar hum apni marzi se har rate me 2 ya har rate me 3 decimal places len?
Thank you sir
thankyou sir😇
MCQ question ka pdf de do sir summarize kr k portal wla.......it will be very helpful for students.
Sir, ish ka pdf kahan milega .
Telegram group main to kuch bhi dala nahi gaya he????????
Already shared on telegram channel
@@FinalKickByCAPratikJagati which channel
thanku sir
2:19:18
Sir please Nov 2023 ke paper ke solution discuss kar lijeye 🙏🙏
Sir plz give revision video also
Corporate valuation ka bhi crux notes
Sir jldi se advanced capital budgeting ka v revision daal dijiye..............uska wait kr rhe h hm sb
Sir FR ka new Fastrack kab aayega?????
1.55.00
Sir pls upload a detailed revision video for capital budgeting 🙏
He has already uploaded
@@Sassylets I'm not talking about classes, I'm asking for revision of Cap Bug
❤❤❤❤
Sir advance capital budgeting 1 week k liya unlock kar do na plz
Unlock hi he app pe
@@kiranpatel9683 Anyone can access it ?
@@falaknaz111 yes
@@kiranpatel9683 what if I haven't purchased his classes?
Then also it's accessible
Sir jin hone aapse classes li hai unme cover hai
Fastrack me cover nhi hai
BJP's probability is 99%😂
Thank you so much sir ❤
❤❤
Thank u so much sir 😇🙏
❤❤❤❤