Question: Simulation Ogden Corparation has compiled the following information on a capital expendnure proposat 1) The projected cash inow are normally distrbuted with a mean of

 Simulation Ogden Corparation has compiled the following information on a capital

Simulation Ogden Corparation has compiled the following information on a capital expendnure proposat 1) The projected cash inow are normally distrbuted with a mean of $30,000 and a standand cetio of $9.000 2) The projected cash outlows are normally dist buted with a mean of $27,000 and a standard deviation of $6,000 (3) The tm has an 11.3% cost of canal (4) The procability distributions of cash infows and cash outhiows are not expected to change over the projecs 1o-year ie a. Describe how the foregoing data can be used to develop a simulation model for finding the net present value of the project b. Discuss the advantages of using a simulaton to evaluate the proposed project a.Descrbe howtheforegorg data can be used to develop a smaation modet for finangth* net presen vaa* ofth* proiect (Select at the croces that appy) Ogden Coporoton coud use a compter sminen to genrate probability dstributions for cash infows and oufiows alows values for each of e vanabies to be etermined tuly refects eisting relationships ? A. respechve protatiny dthbtons rough genera on of random number, ?D. The main advantage of using acompter sminorthat you can guaran ee mat you we always get answers mat reoresen mettre outcomes b. Discuss the advantages of using a simulation to evaluate the proposed project The advantages to computer simulations include the decision maker's ability to view a continuum of risk-retu trade-ofts instead of a single-point estimate The computer simulation, however, is mot feasible for irisk analyss I Sele from the drop-down menu) the above staement true or faise? The statement is

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