Question: QUESTION 8. MONTE CARLO SIMULATION In a Monte Carlo Simulation exercise, the following table includes the main results. Table: Descriptive Statistics for Simulated NPV ($

QUESTION 8. MONTE CARLO SIMULATION In a Monte Carlo Simulation exercise, the following table includes the main results. Table: Descriptive Statistics for Simulated NPV ($ millions) Monte Carlo Simulation Results Confidence Level (95.0%) Count Kurtosis Maximum Mean Median Minimum Range Sample Variance Skewness Standard Deviation Standard Error (95.0%) Sum 7.6185 1024 -0.2935 60.1456 30.7654 32.8897 -5.1765 65.3221 15438.9264 0.3598 124.2535 3.887 31503.7696 a. The price variable was estimated using the following equation: 1 P = p + B.T+ r+... 2 Explain the meaning of each of these 3 terms in basic newspaper language. 7.Sp. b. Using the Monte Carlo Simulation Results table, what is the maximum likelihood (ML) estimate for the project's NPV? c. Using the Monte Carlo Simulation Results table, what are the values for 95% confidence boundaries of the project's NPV? d. Using the Monte Carlo Simulation Results table, what is the value of the project's NPV for (i) best-case scenario, and (ii) worst-case scenario? QUESTION 8. MONTE CARLO SIMULATION In a Monte Carlo Simulation exercise, the following table includes the main results. Table: Descriptive Statistics for Simulated NPV ($ millions) Monte Carlo Simulation Results Confidence Level (95.0%) Count Kurtosis Maximum Mean Median Minimum Range Sample Variance Skewness Standard Deviation Standard Error (95.0%) Sum 7.6185 1024 -0.2935 60.1456 30.7654 32.8897 -5.1765 65.3221 15438.9264 0.3598 124.2535 3.887 31503.7696 a. The price variable was estimated using the following equation: 1 P = p + B.T+ r+... 2 Explain the meaning of each of these 3 terms in basic newspaper language. 7.Sp. b. Using the Monte Carlo Simulation Results table, what is the maximum likelihood (ML) estimate for the project's NPV? c. Using the Monte Carlo Simulation Results table, what are the values for 95% confidence boundaries of the project's NPV? d. Using the Monte Carlo Simulation Results table, what is the value of the project's NPV for (i) best-case scenario, and (ii) worst-case scenario

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