Question: 16. For the medical device company problem (Problem 9 in Chapter 15), suppose that the net present values of the projects are uncertain. The best

16. For the medical device company problem (Problem 9 in Chapter 15), suppose that the net present values of the projects are uncertain. The best estimates of the mean values are given in the problem statement in Chapter 15. Assume that the distributions of NPV are lognormally distributed with standard deviations equal to 15% of the means. In addition, the probability that any project will be successfully completed is estimated to be 0.8.

a. Use Risk Solver Platform to find the best set of projects to select.

b. Conduct sensitivity analyses on the probability of successful completion and summarize your results.

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