Question: Information about the cash flows for a four-year financial project are listed in the following table. The cash flows are assumed to follow a triangular
Information about the cash flows for a four-year financial project are listed in the following table. The cash flows are assumed to follow a triangular distribution. The cost of implementing the project is expected to be between $60,000 and $70,000, with all values in this range being equally likely. Analysis of changes in the Consumer Price Index suggests that the annual rate of inflation can be approximated with a normal distribution with a mean of 4 percent and standard deviation of 1.5 percent. The organization's required rate of return is 20 percent. Develop a model in CB to analyze this situation and answer the following questions?
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To analyze this problem the Crystal Ball model shown in the Figure below was created The results are ... View full answer
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