Value and worth: probability analysis

The purpose of this paper is to consider probability analysis in the context of value and worth.

The paper explains the Data table, an inbuilt function of Excel (and Lotus 123), that allows the user to put a table on the input screen and tests the functions against a predetermined matrix of changing inputs.

The advantage of using a probability based analysis to test the variables is that it allows the user to get a better view of the possible outcomes, in this case the range of IRRs that may be achieved.

This paper looks at the usefulness of using data tables to predict different scenarios and outcomes.