Building Risk Analysis Skills into Curriculum with Simulation Examples in Excel

• Autorzy: Sylwia Gornik-Tomaszewski , Victoria Shoaf
• Języki publikacji: EN

Abstrakty

EN

This paper provides examples of how the introduction of a simple simulation model can enhance traditional accounting curriculum. The first example builds on traditional coverage of the capital budgeting topic offered in managerial accounting textbooks by incorporating the consideration of uncertainty and risk. An educational Monte Carlo model is developed with the basic Excel package. In the model, the deterministic cash flows usually used in textbook examples are replaced by a stochastic process involving probability distribution of each cash flow factor that has inherent uncertainty. Based on one hundred replications of the simulation, a frequency table and histogram are built to summarize and visualize possible outcomes of the stochastic Net Present Value (NPV) decision model. This approach adds an additional dimension to the capital budgeting analysis and equips students with another tool useful in dealing with uncertainty inherent in the capital budgeting process. (fragment of text)

Słowa kluczowe

EN

Financial crisis; Risk analysis; Computing simulation; Excel

PL

Kryzys finansowy; Analiza ryzyka; Symulacje komputerowe; Excel

• Czasopismo: Scientific Publications / University of Economics in Katowice
• Rocznik: 2014
• Tom: Global Business Towards New Paradigm in Time of Crisis
• Strony: 40--50

Twórcy

autor

Sylwia Gornik-Tomaszewski

• St. John's University, United States

autor

Victoria Shoaf

• St. John's University, United States

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