AutoSave OFF OFF A SU Document a Home Insert Draw Design Layout References Mailings Review View Tell me Share Comments y EEE 24 Aakelde Times New... v v 12 A A Aa A BU X X ADA : .d bt hasbccbek AaBbcente Pagic = = = Normal No Spacing Headingt Hascing 2 Title Bubtitle Bubile Eman... Dictate Styles Pare Unfortunately, the Capital Investment Committee refused to approve your recommendation (from above) since you did not consider the uncertainty inherent in these types of investments. Repeat your analysis, this time using Crystal Ball and the following information. What is the probability of meeting the NPV for the investments? Investment A: i. Year O Investment cost: Triangular distribution (optimistic: $125.000; crust likely: $150,000, pessimistic: $175,000) ii. Year 1-5 operating cost: Normal distribution (mean of $10,000, standard deviation of $2,000) iii. Year 1 Benefits: Normal distribution (mean of $90,000, standard deviation of $20,000) iv. Year 2 Benefits: Normal distribution (mean of $55,000), standard deviation of $15,000) v. Year 3 Benefits: Normal distribution (thean of $35,000, standard deviation of $10,000) vi. Year 4 Benefits: Normal distribution (heun of $20,000, standard deviution of $5000) vii. Year 5 Benefits: Normal distribution (mean of $20,000, standard deviation of $5000) Investment : i. Year O Investment cost: Triangular distribution (optimistic: $75,000; most likely: $80.000; pessimistic: 595,000) ii. Year 1 Benefits: Normal distribution (mezin of $45.000, standard deviation of $20,000) iii. Year 2 Benefits: Normal distribution (mean of $15,000, standard deviation of $5,000) iv. Year 3 Benefits: Normal distribution (mean of $10,000, standard deviation of $3,000) V. Year 4 Benefits: Normal distribution (mean of $10,000, standard deviation of $3,000) vi Year 5 Benefits: Normal distribution (mezin of $15.000, standard deviation of $5,000) Page 1 of 1 224 words LE English (United States) Focus + 122 AutoSave OFF OFF A SU Document a Home Insert Draw Design Layout References Mailings Review View Tell me Share Comments y EEE 24 Aakelde Times New... v v 12 A A Aa A BU X X ADA : .d bt hasbccbek AaBbcente Pagic = = = Normal No Spacing Headingt Hascing 2 Title Bubtitle Bubile Eman... Dictate Styles Pare Unfortunately, the Capital Investment Committee refused to approve your recommendation (from above) since you did not consider the uncertainty inherent in these types of investments. Repeat your analysis, this time using Crystal Ball and the following information. What is the probability of meeting the NPV for the investments? Investment A: i. Year O Investment cost: Triangular distribution (optimistic: $125.000; crust likely: $150,000, pessimistic: $175,000) ii. Year 1-5 operating cost: Normal distribution (mean of $10,000, standard deviation of $2,000) iii. Year 1 Benefits: Normal distribution (mean of $90,000, standard deviation of $20,000) iv. Year 2 Benefits: Normal distribution (mean of $55,000), standard deviation of $15,000) v. Year 3 Benefits: Normal distribution (thean of $35,000, standard deviation of $10,000) vi. Year 4 Benefits: Normal distribution (heun of $20,000, standard deviution of $5000) vii. Year 5 Benefits: Normal distribution (mean of $20,000, standard deviation of $5000) Investment : i. Year O Investment cost: Triangular distribution (optimistic: $75,000; most likely: $80.000; pessimistic: 595,000) ii. Year 1 Benefits: Normal distribution (mezin of $45.000, standard deviation of $20,000) iii. Year 2 Benefits: Normal distribution (mean of $15,000, standard deviation of $5,000) iv. Year 3 Benefits: Normal distribution (mean of $10,000, standard deviation of $3,000) V. Year 4 Benefits: Normal distribution (mean of $10,000, standard deviation of $3,000) vi Year 5 Benefits: Normal distribution (mezin of $15.000, standard deviation of $5,000) Page 1 of 1 224 words LE English (United States) Focus + 122
