EXPVAL starts a set of linked interactive functions which compute the expected (present) value of a set of alternatives for a number of future scenarios. The expected value of each alternative (rows) for each future (columns) is represented by the matrix PM. EXPVAL calls PAF (it can be bypassed) which accepts Receipts and Dispersements vectors and discount rates for each alternative for each future, and computes PM a global matrix of present values.
The PM matrix can be constructed externally to EXPVAL for any decision variable by any desired technique (i.e. PAF or the use of present values are not necessarily required).
PAF is an interactive function for entering the data on each alternative for each future. Each alternative for each future involves a set of Receipts and Dispersements. These are entered using the fn CFI which is also used in NOTAX, etc. and allows inflating the entries. Because a set of Receipts and Disbursements are required for each case, the entry of the data can be tedious. PAF also enters the discount rate for each future for each alternative.
The entry is for each alternative for each future in that order so that much of the data entry may be repetitious and will require only the use of [Enter] to confirm. The discounting to present value uses the fn DCF which allows the entry of a discount rate for each iteration.
Each alternative for each future involves a set of Receipts & Disbursements. These are constructed using the fn CFI which is also used in NOTAX, etc. and allows inflating the estimates in current monetary units.
The probabilities of each future are required and they must each sum to 1. EV is the expected value vector of the matrix PM as computed by the function EXP. The order of the values of EV follows the rows of PM. Standard Deviations (SD) are computed for each expected value to allow estimates of confidence, etc.
End to date, ams 980903