Question: Your group is a decision - making team in your firm and is considering an estimated $ 1 0 million expansion project. Estimates of key
Your group is a decisionmaking team in your firm and is considering an estimated $ million expansion project. Estimates of key input factors are as following all uniformly distributed:
Market size: to tons for the first year
Selling price: $ to $
Market growth rate: to per year after the first year
Market share: to
Total investment required: $ million to $ million
Useful life of the new facility: to years
Residual value of the facility: $ million to $ million
Operating costs: $ to $ per ton
Fixed costs: $ to $ per year
Analyze the risks associated with this project. The results of the risk analysis include: estimated net profitloss possible min profitloss possible max profitloss and probability of making loss.
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