Explain why in any given season, the one-period decision model may result in a poor choice...
Explain why in any given season, the one-period decision model may result in a poor choice for a stocking level?
Homework Answers
One-period decision model is used for discounting cash flows in approach of income-valuation. The errors may happen because in any given season, only a single average figure becomes the reference till the end. Hence, practically, the model is a flawed one. Moreover, when discount rate changes, it does not record the same because it is based on the value derived only in one period which may be prone to sensitivity. Therefore, in any given season, the one-period decision model may result in a poor choice for a stocking level.
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Explain why in any given season, the one-period decision
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