Reality recognizes that there is risk associated with each estimated number. After careful study, the firm estimates the probabilistic behaviours are best incorporated by the following: 

• Investment (equipment and installation) - uniformly distributed (discrete) between $210,000 and $230,000 

• Profits - normally distributed with a mean of $40,000 and a standard deviation of $6,000 (each year profits would be different) 

• Overhauls - 10% chance the cost will be $85,000; 60% chance $100,000; 30% chance $120,000 .

• Salvage Value - normally distributed with a mean of $100,000 and a standard deviation of $13,000.

Incorporate these distributions into your model, and run 1000 trials. What is the average, and maximum and minimum NPV and IRR? What percent of time is the investment desirable ?