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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Advanced Management Accounting

ISBN: 9780273730187

1st Edition

Authors: Tom Groot, Frank Selto

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