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Perform a Monte Carlo Simulation with 1,000 trials to determine the expected NPV and the standard deviation of the expected NPV. The uncertain variables and

  • Perform a Monte Carlo Simulation with 1,000 trials to determine the expected NPV and the standard deviation of the expected NPV. The uncertain variables and their probability distributions are given below. The quantity of rock salt sold should be simulated for each year independently of the others (i.e., it is five separate variables). Variable Distribution Tons of rock salt in each year Triangular with a min of 50,000, most likely of 80,000, and maximum of 95,000. Variable cost per ton Normal with a mean of $45 and a standard deviation of $3. Salvage value of equipment Uniform with a min of $70,000 and a max of $200,000.

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