Question
In Exercise 7, assume that the inflows are uncertain but normally distributed with standard deviations of $1,000, $1,500, $2,000, and $3,500, respectively. Find the mean
In Exercise 7, assume that the inflows are uncertain but normally distributed with standard deviations of $1,000, $1,500, $2,000, and $3,500, respectively. Find the mean forecast NPV using Crystal Ball. What is the probability the actual NPV will be positive? (you can use @Risk or SIPMath). Excercise 7 below for reference.
Excercise 7. Conduct a discounted cash flow calculation to determine the NPV of the following project, assuming a required rate of return of 0.2. The project will cost $75,000 but will result in cash inflows of $20,000, $25,000, $30,000, and $50,000 in each of the next 4 years.
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