Resolved: Graph at minute 4:37
I don't understand the graph at minute 4:37
3 answers ( 1 marked as helpful)
Hi, Laith Kaddoumi, MSc
Thanks for reaching out. I understand that the graph at minute 4:37 may be confusing. Could you please provide a bit more detail about the specific graph or data points you are struggling with? This will help me provide a clearer explanation. Looking forward to your reply!
the graph of IOS
Hi Laith,
Thanks for reaching out!
The Investment Opportunity Schedule (IOS) is simply a way to rank investment projects by how attractive they are.
Think of it as a ranking of investment projects from best to worst.
Each bar represents a potential investment project. The height of each bar shows the project’s expected return (usually its IRR). Projects are ordered from highest return on the left to lowest return on the right. The width of each bar represents how much capital the project requires
The graph tells us which projects are the most attractive first. It helps compare project returns with the Marginal Cost of Capital (MCC). In simple terms, a company should accept projects up to the point where IRR ≥ MCC
Hope this helps!
Best,
The 365 Team
Thanks for reaching out!
The Investment Opportunity Schedule (IOS) is simply a way to rank investment projects by how attractive they are.
Think of it as a ranking of investment projects from best to worst.
Each bar represents a potential investment project. The height of each bar shows the project’s expected return (usually its IRR). Projects are ordered from highest return on the left to lowest return on the right. The width of each bar represents how much capital the project requires
The graph tells us which projects are the most attractive first. It helps compare project returns with the Marginal Cost of Capital (MCC). In simple terms, a company should accept projects up to the point where IRR ≥ MCC
Hope this helps!
Best,
The 365 Team