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Mavdog · 03-08-2009, 03:16 PM

in this case it is accounting for the "appraisal" value of the asset

again, the lack of a viable market on a given day does not truly reflect the long term value.

a slurpee is not worth as much on a day when it's 5 degress outside and snowing compared to a summer day of 110 degrees. there may be only one person willing to buy that slurpee for a dime on the winter day, on the 100 degree summer day people will be lining up willing to pay over a $1. if the co is forced to value the slurpee based on the winter day's market, it's undervalued compared with what it's possibly worth.

03-08-2009, 03:16 PM	#132
Mavdog Diamond Member Join Date: Jan 2002 Location: Texas Posts: 6,014	in this case it is accounting for the "appraisal" value of the asset again, the lack of a viable market on a given day does not truly reflect the long term value. a slurpee is not worth as much on a day when it's 5 degress outside and snowing compared to a summer day of 110 degrees. there may be only one person willing to buy that slurpee for a dime on the winter day, on the 100 degree summer day people will be lining up willing to pay over a $1. if the co is forced to value the slurpee based on the winter day's market, it's undervalued compared with what it's possibly worth. Last edited by Mavdog; 03-08-2009 at 03:17 PM.