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Question: Calculate Expected NPV, Standard Deviation for expected NPV, Expected IRR, and estimate of Probability that NPV PLease complete all tables below and show all
Question: Calculate Expected NPV, Standard Deviation for expected NPV, Expected IRR, and estimate of Probability that NPV
PLease complete all tables below and show all formulas used. thanks
Monte Carlo Simulation SV 25000 = Given: MARR: 12 Initial Cost: $105,000 Salvage Value: Normal Distribution (mean = $1,500; standard deviation = $300) Project Life: 6,7, or 8 years (equally likely) Annual Benefit Optimistic: $30,000 with probability of 0.25 Most Likely: $25,000 with probability of 0.60 Pessimistic: $20,000 with probability of 0.15 Suggested NPV formula: "=PV( ... )+initial cost" Expected IRR = Expected NPV = Standard Deviation of NPV = Probability NPV
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