Using Crystal Ball and the following information:

a. Investment A:

i. Year 0 Investment cost: Triangular distribution (optimistic: $125,000; most likely: $150,000; pessimistic: $175,000)

ii. Year 1-5 operating cost: Normal distribution (mean of $10,000, standard deviation of $2,000)

iii. Year 1 Benefits: Normal distribution (mean of $90,000, standard deviation of $20,000)

iv. Year 2 Benefits: Normal distribution (mean of $55,000, standard deviation of $15,000)

v. Year 3 Benefits: Normal distribution (mean of $35,000, standard deviation of $10,000)

vi. Year 4 Benefits: Normal distribution (mean of $20,000, standard deviation of $5000)

vii. Year 5 Benefits: Normal distribution (mean of $20,000, standard deviation of $5000)

b. Investment B:

i. Year 0 Investment cost: Triangular distribution (optimistic: $75,000; most likely: $80,000; pessimistic: $95,000)

ii. Year 1 Benefits: Normal distribution (mean of $45,000, standard deviation of $20,000)

iii. Year 2 Benefits: Normal distribution (mean of $15,000, standard deviation of $5,000)

iv. Year 3 Benefits: Normal distribution (mean of $10,000, standard deviation of $3,000)

v. Year 4 Benefits: Normal distribution (mean of $10,000, standard deviation of $3,000)

vi. Year 5 Benefits: Normal distribution (mean of $15,000, standard deviation of $5,000)

c. If the Internal Rate of Return (IRR) is still 6%, what is the NPV for each investment?

Answer rating: 100% (QA)

c If the Internal Rate of Return IRR is still 6 what is the NPV for each investment ANSWER a The NPV ... View the full answer