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Show the process by which a computer would perform a simulation analysis for this project. Assume the computer has generated the random numbers used in
Show the process by which a computer would perform a simulation analysis for this project. Assume the computer has generated the random numbers used in parts and
Use the random numbers and to determine the project's life and development costs; these will be the same for all sample years.
Use and as random numbers to determine the unit sales, sales price per unit, and cost per unit in the first year, respectively. Calculate the net income. Repeat this for Year by using the random values and to determine the unit sales, sales price per unit, and cost per unit in the second year. Repeat this for Year and any subsequent years by using the random values and to determine the unit sales, sales price per unit, and cost per unit in the third year, respectively.
What is the NPV for this sample? Do not round intermediate calculations. Round your answer to the nearest dollar. Use a minus sign to enter a negative value, if any.Simulation
Singleton Supplies Corporation SSC manufactures medical products for hospitals, clinics, and nursing homes. SSC may introduce a new type of Xray scanner designed to identify certain
types of cancers in their early stages. There are a number of uncertainties about the proposed project, but the following data are believed to be reasonably accurate:
Cost per Unit
Excluding
SSC uses a cost of capital of to analyze averagerisk projects such as this one. The firm is in the federalplusstate income tax bracket.
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