We have a Fertilizer company who wants to calculate its NPV for the next 5 years .
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Question:
We have a Fertilizer company who wants to calculate its NPV for the next years However, there are some uncertainties needed to be incorporated into the calculation:
Cost of capital ~ uniformly distributed between and
Cash flows at time are uncertain:
CF~ triangular distribution $K$K$K
CF~ uniformly distributed between $K and $K
What is the probability that NPV is between $K and $KWhat variable is NPV most sensitive to
Cash outlay:
CF:
CF:
CF:
CF:
CF:
Salvage value in year :
Related Book For
Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe
Posted Date: