FIN Quiz 4 IBS has been involved in organizing workshops and training for about 30 years. Although the COVID19 situation, IBS decided continue holding a weekly basis training given that the number of participants could be affected. Thus, IBS has conducted a market research which showed two scenarios shown in the table below: Scenarios Probability of scenario Average number of person in 1 course Optimistic scenario 55% 18 Pessimistic scenario 45% 7 6 IBS would like to test its expectations in a training project that lasts for 6 month, so prior to the first training the following initial investments should be made: Simulation games: 3000 Licensed methodology: 1500 Equipment (accessories, boards, projector): 2500 Additional information: Workshop leaders' salary: 350 per occasion (over 15 participants 2 leaders are needed) Monthly advertisement expense: 1000 Workshop material costs (paid by the IBS): 30 per person Rent fee: 280 per occasion per room (over 15 participants 2 rooms are needed) Administrative cost of workshops: 4050 per quarter Workshop fee paid by participants: 200 per person Maximum number of participants in a training: 20 people Four trainings are organized in each month. Required: a) Calculate the expected monthly profit related to IBS workshops b) What is the NPV of the project if APR is 6%? Is it worth pursuing the project? FIN Quiz 4 IBS has been involved in organizing workshops and training for about 30 years. Although the COVID19 situation, IBS decided continue holding a weekly basis training given that the number of participants could be affected. Thus, IBS has conducted a market research which showed two scenarios shown in the table below: Scenarios Probability of scenario Average number of person in 1 course Optimistic scenario 55% 18 Pessimistic scenario 45% 7 6 IBS would like to test its expectations in a training project that lasts for 6 month, so prior to the first training the following initial investments should be made: Simulation games: 3000 Licensed methodology: 1500 Equipment (accessories, boards, projector): 2500 Additional information: Workshop leaders' salary: 350 per occasion (over 15 participants 2 leaders are needed) Monthly advertisement expense: 1000 Workshop material costs (paid by the IBS): 30 per person Rent fee: 280 per occasion per room (over 15 participants 2 rooms are needed) Administrative cost of workshops: 4050 per quarter Workshop fee paid by participants: 200 per person Maximum number of participants in a training: 20 people Four trainings are organized in each month. Required: a) Calculate the expected monthly profit related to IBS workshops b) What is the NPV of the project if APR is 6%? Is it worth pursuing the project