Mitigation: Substitute Earnings and the Net Loss
This lesson is part of the course
In this lesson
You credit the margin Kestrel earned on substitute sales, cap each month's credit at that month's loss, total the net loss and deduct an order it unreasonably declined.
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Lessons in this course
- Lost Profits: But-For Revenue, Actual Revenue and Avoided Costs Locked
- Mitigation: Substitute Earnings and the Net Loss Locked
- Statutory Interest with a Changing Rate Table Locked
- Simple vs Compound Interest and Day-Count Conventions Locked
- Late-Payment Interest on Unpaid Invoices Locked
- Future Losses: Projecting Lost Earnings and Discounting to Present Value Locked
- Case Value: Expected Outcome, Costs and the Break-Even Probability Locked
- Structured Settlement vs Lump Sum: PV, RATE and a Sensitivity Chart Locked