Monte Carlo analysis Consider the data in Exercise 7.1 and the solution to Exercise 7.2. Sales are
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Monte Carlo analysis Consider the data in Exercise 7.1 and the solution to Exercise 7.2. Sales are expected to vary randomly and uniformly between plus and minus 20% of the forecasted values.
Required:
1. Prepare a Monte Carlo analysis of the project’s NPV with at least 1000 simulated values.
2. What is the estimated probability that the project will have a positive NPV?
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