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You are given the following information about an investment project: i) A project requires an investment of 4,000,000. i) The project develops a product which
You are given the following information about an investment project: i) A project requires an investment of 4,000,000. i) The project develops a product which will be sold perpetually at a constant level. i Units sold per year are modeled using an exponential distribution with mean 150,000. iv) Price per unit is uniformly distributed on [20, 40]. v) The cost of capital has a normal distribution with parameters -02, 2-0.0036. A simulation run uses the following uniform numbers on [0,1): 0.5 for units sold, 0.7 for price per unit, 0.1 for cost of capital Calculate the NPV for this run. You are given the following information about an investment project: i) A project requires an investment of 4,000,000. i) The project develops a product which will be sold perpetually at a constant level. i Units sold per year are modeled using an exponential distribution with mean 150,000. iv) Price per unit is uniformly distributed on [20, 40]. v) The cost of capital has a normal distribution with parameters -02, 2-0.0036. A simulation run uses the following uniform numbers on [0,1): 0.5 for units sold, 0.7 for price per unit, 0.1 for cost of capital Calculate the NPV for this run
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