How is 992,335.51 calculated? Where does this number come from (aka formula/equation)? Duration (# periods - months)

How is 992,335.51 calculated?

 Where does this number come from (aka formula/equation)?

 

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Duration (# periods - months) Hourly Rate # Hours/mth Total Cost/mth Discount rate (per month) Revenue Alt 1 Revenue Alt 2 Probability off Alt 2 Bonus Probability off no Alt 2 Bonus Alt 2 Bonus Amt Prob Probability 0.7 0.3 Alt 2 Bonus Calc Inputs Outputs Alt 1 NPV Alt 2 NPV Alt 3 0.45 Rev Bonus Alt 2 *30 percent chance off losing $338,442.99 24 $140 1000 Payoff $1,500,000 $0 $140,000 0.50% $155,000 $125,000 0.7 0.3 $1,500,000 150000 $1,500,000 $338,442.99 $992,335.51 Period (Months) Alternative 1 Revenue Costs Bonus (iff applicable) Cash fflow (Contributio NPV Alternative 2 Revenue Costs Bonus (iff applicable) Cash fflow (Contributio NPV 1 $155,000 $140,000 $15,000 $338,442.99 $125,000 140000 -$15,000 $992,335.51 Duration (# periods - months) Hourly Rate # Hours/mth Total Cost/mth Discount rate (per month) Revenue Alt 1 Revenue Alt 2 Probability off Alt 2 Bonus Probability off no Alt 2 Bonus Alt 2 Bonus Amt Prob Probability 0.7 0.3 Alt 2 Bonus Calc Inputs Outputs Alt 1 NPV Alt 2 NPV Alt 3 0.45 Rev Bonus Alt 2 *30 percent chance off losing $338,442.99 24 $140 1000 Payoff $1,500,000 $0 $140,000 0.50% $155,000 $125,000 0.7 0.3 $1,500,000 150000 $1,500,000 $338,442.99 $992,335.51 Period (Months) Alternative 1 Revenue Costs Bonus (iff applicable) Cash fflow (Contributio NPV Alternative 2 Revenue Costs Bonus (iff applicable) Cash fflow (Contributio NPV 1 $155,000 $140,000 $15,000 $338,442.99 $125,000 140000 -$15,000 $992,335.51

Answer rating: 100% (QA)

The number 99233551 is calculated as the net present value NPV of Alternative 2 in the given scenari... View the full answer