Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please show in excel! 2. Consider the data in problem 2 and perform a scenario analysis using the percentages of change for the same uncertain

image text in transcribedPlease show in excel!

2. Consider the data in problem 2 and perform a scenario analysis using the percentages of change for the same uncertain variables and the probabilities for each scenario given in the following table: a) Determine the payback period, discounted payback period, NPV, PI, IRR, and MIRR of this project under each scenario. b) Determine the expected NPV, PI, and IRR, and the corresponding standard deviation, coefficient of variation, and the probability of a negative NPV, a PI equal to 1 , and an IRR equal to the firm's IRR. c) Perform a Monte Carlo simulation with 1,000 trials to determine the expected NPV. Also determine the standard deviation of the expected NPV. The uncertain variables and their probability distributions are given in the following table: d) Create a histogram using the Histogram chart type, showing the probability distribution of NPV. e) Using the output of the simulation, determine the probability that the NPV will be less than or equal to zero. Compare your results with those of part (a). 2. Consider the data in problem 2 and perform a scenario analysis using the percentages of change for the same uncertain variables and the probabilities for each scenario given in the following table: a) Determine the payback period, discounted payback period, NPV, PI, IRR, and MIRR of this project under each scenario. b) Determine the expected NPV, PI, and IRR, and the corresponding standard deviation, coefficient of variation, and the probability of a negative NPV, a PI equal to 1 , and an IRR equal to the firm's IRR. c) Perform a Monte Carlo simulation with 1,000 trials to determine the expected NPV. Also determine the standard deviation of the expected NPV. The uncertain variables and their probability distributions are given in the following table: d) Create a histogram using the Histogram chart type, showing the probability distribution of NPV. e) Using the output of the simulation, determine the probability that the NPV will be less than or equal to zero. Compare your results with those of part (a)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

M: Finance

Authors: Marcia Cornett, Troy Adair, John Nofsinger

5th Edition

1260772357, 9781260772357

More Books

Students also viewed these Finance questions

Question

What are the objectives of Human resource planning ?

Answered: 1 week ago

Question

Explain the process of Human Resource Planning.

Answered: 1 week ago