laurxine0_0 Posted August 17, 2023 Report Share Posted August 17, 2023 hello guys i just need help about my IA, so i'm doing primary research and i have to collect the balance sheet and the profit and loss statement of x business for my work and my tools are decision tree and investment appraisal, and i have no clue on what document i have to use for the tools. like do i use balance sheet with decision tree or investment appraisal? ( I don't know if what I'm saying makes sense.) but if you understand please help me. Reply Link to post Share on other sites More sharing options...
AnnaHoffman Posted August 30, 2023 Report Share Posted August 30, 2023 On 8/17/2023 at 7:04 PM, laurxine0_0 said: hello guys i just need help about my IA, so i'm doing primary research and i have to collect the balance sheet and the profit and loss statement of x business for my work and my tools are decision tree and investment appraisal, and i have no clue on what document i have to use for the tools. like do i use balance sheet with decision tree or investment appraisal? ( I don't know if what I'm saying makes sense.) but if you understand please help me. Hey there! Totally get where you're coming from, and I'll do my best to help you out. Firstly, let's break down the tools you mentioned and the documents: Decision Tree This is a graphical representation used to evaluate the potential outcomes of different decisions. It's often used in scenarios where there are multiple possible actions and uncertain outcomes. For a decision tree, you'd typically need data that can help you estimate probabilities and potential payoffs for each decision branch. This might not directly relate to the balance sheet or the profit and loss statement, but could be informed by trends or data points from these documents. Investment Appraisal This is a collection of techniques used to determine the attractiveness of an investment. Common methods include Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period. For investment appraisal, you'd primarily use the profit and loss statement because you need to understand cash inflows and outflows over time. However, the balance sheet can also provide context, especially when considering assets, liabilities, and equity which might impact the investment's feasibility or attractiveness. Given the above: For Decision Trees, you might not directly use the balance sheet or profit and loss statement. Instead, you'd use them to inform your decisions or to understand the context better. For example, if you're evaluating whether a business should invest in a new project, past profit trends might help you estimate future profits. For Investment Appraisal, you'd definitely lean on the profit and loss statement to understand potential future cash flows. The balance sheet can give you a snapshot of the company's current financial health, which might influence your appraisal. It sounds like you're in the early stages of your IA, so don't stress too much! It's all about understanding your tools and how best to apply them. If you're still unsure, it might be a good idea to discuss with your IB Business teacher or advisor. They can provide guidance tailored to your specific topic and approach. Hope this helps, and best of luck with your IA! You got this 💪 Reply Link to post Share on other sites More sharing options...
laurxine0_0 Posted September 11, 2023 Author Report Share Posted September 11, 2023 On 8/30/2023 at 3:27 PM, AnnaHoffman said: Hey there! Totally get where you're coming from, and I'll do my best to help you out. Firstly, let's break down the tools you mentioned and the documents: Decision Tree This is a graphical representation used to evaluate the potential outcomes of different decisions. It's often used in scenarios where there are multiple possible actions and uncertain outcomes. For a decision tree, you'd typically need data that can help you estimate probabilities and potential payoffs for each decision branch. This might not directly relate to the balance sheet or the profit and loss statement, but could be informed by trends or data points from these documents. Investment Appraisal This is a collection of techniques used to determine the attractiveness of an investment. Common methods include Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period. For investment appraisal, you'd primarily use the profit and loss statement because you need to understand cash inflows and outflows over time. However, the balance sheet can also provide context, especially when considering assets, liabilities, and equity which might impact the investment's feasibility or attractiveness. Given the above: For Decision Trees, you might not directly use the balance sheet or profit and loss statement. Instead, you'd use them to inform your decisions or to understand the context better. For example, if you're evaluating whether a business should invest in a new project, past profit trends might help you estimate future profits. For Investment Appraisal, you'd definitely lean on the profit and loss statement to understand potential future cash flows. The balance sheet can give you a snapshot of the company's current financial health, which might influence your appraisal. It sounds like you're in the early stages of your IA, so don't stress too much! It's all about understanding your tools and how best to apply them. If you're still unsure, it might be a good idea to discuss with your IB Business teacher or advisor. They can provide guidance tailored to your specific topic and approach. Hope this helps, and best of luck with your IA! You got this 💪 Hi, i just saw your respond thank you i was really stressing out cause my teacher won't help me, your such a big help every time thank you Reply Link to post Share on other sites More sharing options...
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