Simulation Ogden Corporation has compiled the following information on a captal expenditure proposat (1) The projected cash infows are normally distributed with a mean of $31,000 and a standard deviation of $12,000 (2) The projected cash outflows are normally dstrbuted with a mean of $25,000 and a standard deviation of $8.000 (3) The firm has an 111% cost or captial (4) The probability distibuions of cash inflows and cash outlows are not expected to change over the projects 10 year ite a. Describe how the foregoing data can be used to develop a simalation model for finding the net present value of the project b. Discuss the advantages of using a simulation to evaluate the proposed project a. Desate how the foregoing data can be used to develop a simdaton model for mingthe net peset vahe othe pepectSeed ase eheen har acoi A. Ogden Corporation could use a computer simulation to generate the respect e prottataty distrtutions nrough the genelbon otandem numbers using the probability distrbutions for cash nflows and oufows allows values for each of the variables to be determined C. The use of the computer also allows for more sophisticated simalation using components of cash infows and D. The main advantage or using a compuner smaton es that you can guaaeee nat you wn aways get answers mat repetent he inre owns b. Discuss the advantages of using a simulaion to evaluate the proposed project The advantages to computer simlations Is the above statement he or talie? The statement s l select mathematical model that Sruly reflects existing relationships to view a continuum of risk-reurm trade-ofs nstead of a single-point estmate The computer simuiation, howeer is not eaible for ris anlys bom the die down men. ) Simulation Ogden Corporation has compiled the following information on a captal expenditure proposat (1) The projected cash infows are normally distributed with a mean of $31,000 and a standard deviation of $12,000 (2) The projected cash outflows are normally dstrbuted with a mean of $25,000 and a standard deviation of $8.000 (3) The firm has an 111% cost or captial (4) The probability distibuions of cash inflows and cash outlows are not expected to change over the projects 10 year ite a. Describe how the foregoing data can be used to develop a simalation model for finding the net present value of the project b. Discuss the advantages of using a simulation to evaluate the proposed project a. Desate how the foregoing data can be used to develop a simdaton model for mingthe net peset vahe othe pepectSeed ase eheen har acoi A. Ogden Corporation could use a computer simulation to generate the respect e prottataty distrtutions nrough the genelbon otandem numbers using the probability distrbutions for cash nflows and oufows allows values for each of the variables to be determined C. The use of the computer also allows for more sophisticated simalation using components of cash infows and D. The main advantage or using a compuner smaton es that you can guaaeee nat you wn aways get answers mat repetent he inre owns b. Discuss the advantages of using a simulaion to evaluate the proposed project The advantages to computer simlations Is the above statement he or talie? The statement s l select mathematical model that Sruly reflects existing relationships to view a continuum of risk-reurm trade-ofs nstead of a single-point estmate The computer simuiation, howeer is not eaible for ris anlys bom the die down men. )
