Question

Conduct a probabilistic sensitivity analyses of the following project. Perform 10 iterations and create cumulative probability curves for IRR and NPV 1. The project life is 7 years and the MA RR is 15%. The initial investment is given by a uniform distribution between $200,000 and $300,000. The annual profit is given by a triangular distribution that has a minimum value of $55,000/year, a mode of $67,500/ycar, and a maximum valuc of $35,000/year. The salvage value of the investment is given by a triangular distribution that has a minimum value of $60,000, a mode of $75,000, and a maximum value of $85,000. Use the table of random numbers provided on page 2 and complete the tables and graphs that follow. Tables are provided for assistance in plotting the graphs. Attach all calculation sheets. You can sketch the solution using the provided graphs or prepare your own. If so use similar labeling.

Answer 1

上teratfor)- NPV Ta. 7. &9o531 0 0 535 o staus e-3222S 16502 0.19,533 0.91가6 0-51957 Q. 1583 81539 :oSye88 勺 au362

D. 12gal 0-94139 0-85 33.7 276502. 20.3 ·71 B3S- 53512 o.gy2by ou. ? 0 . 894V- 0, 271092- 6507 y , 26432- 22003 154th 618p (20112- 0-826&6 o, 26623

to o- 43264. o 864 2-2 119 Qter 3 -21n53 8i534 SIS39 81531 615 69ちな 69SP 64512 6931 8153 93.9ブ

12b 1o0 do 0 2.0