1. 1. In Excel, project your salary over your career (usually 30 or more years) for at least two career options. Have your salary increase each year at an uncertain rate, using RANDBETWEEN (see GIF below, right).
2. 2. Calculate the NPV at 7% of each option.
3. 3. Create 100 scenarios using a Data Table and calculate the average, max, min, and standard deviation of the NPV of each option.
4. 4. Calculate the expected (average) value of each career choice
5. 5. Highlight the best choice, i.e., the one with the highest expected (average) value
6. 6. Submit an Excel spreadsheet.

Image transcription text

B. Create a Monte Carlo simulation to evaluate your career options. i. In Excel, project your salary over your — career (usually 30 or more years) for at least two career options. Have your salary increase each year at an uncertain rate, using RANDBETWEEN (see GIF below, right). ii. Calculate the NPV at 7% of each opfion. Create 100 scenarios using a Data Table and calculate the average, max, min, and standard deviation of the NPV of each option. iv. Calculate the expected (average) value of each career choice = . Highlight the best choice, i.e., the one with the highest expected (average) value. Wi Explain in 2-3 sentences why it's the best choice based on your analysis. Cite your data sources. vii. Submit an Excel spreadsheet.

Transcribed Image Text:

B. Create a Monte Carlo simulation to evaluate your career options. i. In Excel, project your salary over your career (usually 30 or more years) for at least two career options. Have your salary increase each year at an uncertain rate, using RANDBETWEEN (see GIF below, right). ii. Calculate the NPV at 7% of each option. iii. Create 100 scenarios using a Data Table and calculate the average, max, min, and standard deviation of the NPV of each option. iv. Calculate the expected (average) value of each career choice v. Highlight the best choice, i.e., the one with the highest expected (average) value. vi. Explain in 2-3 sentences why it's the best choice based on your analysis. Cite your data sources. vii. Submit an Excel spreadsheet. B. Create a Monte Carlo simulation to evaluate your career options. i. In Excel, project your salary over your career (usually 30 or more years) for at least two career options. Have your salary increase each year at an uncertain rate, using RANDBETWEEN (see GIF below, right). ii. Calculate the NPV at 7% of each option. iii. Create 100 scenarios using a Data Table and calculate the average, max, min, and standard deviation of the NPV of each option. iv. Calculate the expected (average) value of each career choice v. Highlight the best choice, i.e., the one with the highest expected (average) value. vi. Explain in 2-3 sentences why it's the best choice based on your analysis. Cite your data sources. vii. Submit an Excel spreadsheet.