Question: Given the table in Problem 6, assume that the cash flow estimates for each year are best represented by a triangular distribution and that the

Given the table in Problem 6, assume that the cash flow estimates for each year are best represented by a triangular and that the hurdle rate is 20 percent.
(a) Use Crystal Ball® to find the expected NPV of the project.
(b) What is the probability that the project will yield a return greater than the 20 percent hurdle rate?

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Year Pessimistic Most Likely Optimistic Used PVIF PV 0 65000 65000 65000 65000 1 65000 1 14000 20000 ... View full answer

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