In the project described in Problem 18, assume that the net cash inflows are probabilistic variables. Further

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In the project described in Problem 18, assume that the net cash inflows are probabilistic variables. Further assume that each forecast net cash inflow is normally distributed with standard deviations of $1,000,

$1,500, $2,000, and $3,500, respectively. Given a required rate of return of 0.2, find the mean forecast LO8 NPV using Crystal Ball. What is the probability that the actual NPV will be positive?

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Project Management In Practice

ISBN: 9780470121641

3rd Edition

Authors: Samuel J. Mantel Jr., Jack R. Meredith, Scott M. Shafer, Margaret M. Sutton

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