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A proposed project has the following cash flow estimates:A proposed project has the following cash flow estimates: Assuming independent cash flows, a normally distributed net
A proposed project has the following cash flow estimates:A proposed project has the following cash flow estimates:
Assuming independent cash flows, a normally distributed net present value, and a minimum attractive rate of return of
determine an analytical solution for the following:
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Part a
Part b
Part c
Part d
Using a Monte Carlo simulation with iterations, estimate the probability that the present worth is positive
and estimate the probability that the present worth is greater than $
The probability that the net present value is positive:
The probability that the net present value is greater than $ :
Carry all interim calculations to decimal places and then round your final answer to decimal
place. The tolerance is
Assuming independent cash flows, a normally distributed net present value, and a minimum attractive rate of return of
determine an analytical solution for the following:
Click here to access the TVM Factor Table Calculator
Part a
Part b
Part c
Part d
Using a Monte Carlo simulation with iterations, estimate the probability that the present worth is positive
and estimate the probability that the present worth is greater than $
The probability that the net present value is positive:
The probability that the net present value is greater than $ :
Carry all interim calculations to decimal places and then round your final answer to decimal
place. The tolerance is
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