Hey guys. Hope you are doing good and in the mood to help a brother out
I have been working on a project that I need to solve the NPV for...I made out the income statement and I believe I have the values correct. I also calculated the NPV for the project using the CFFA, but could anyone help me in making sure these are correct?
The second question I have is running a 250 trial simulation of this project. I know I have to use the NORM.INV function to get random variables for the growth and inflation rate, but I'm not sure how to place it.
Growth Rate: mean 10%, Standard Deviation .75%
Inflation Rate: mean 3.2%, Standard Deviation .75%
Once I run the simulation (how do I do that?) How can i figure out the mean and standard deviation of the NPVs collected. What is the probability the NPV will be positive based on the simulation results?
I have already completed as much as I know how to, can someone help me out with the NPV and break even price for year 1 in the first worksheet and the trial simulation in the second?
THANK YOU
http://www.2shared.com/file/mlX4O40j/ProjectNPVandTrial.html
I have been working on a project that I need to solve the NPV for...I made out the income statement and I believe I have the values correct. I also calculated the NPV for the project using the CFFA, but could anyone help me in making sure these are correct?
The second question I have is running a 250 trial simulation of this project. I know I have to use the NORM.INV function to get random variables for the growth and inflation rate, but I'm not sure how to place it.
Growth Rate: mean 10%, Standard Deviation .75%
Inflation Rate: mean 3.2%, Standard Deviation .75%
Once I run the simulation (how do I do that?) How can i figure out the mean and standard deviation of the NPVs collected. What is the probability the NPV will be positive based on the simulation results?
I have already completed as much as I know how to, can someone help me out with the NPV and break even price for year 1 in the first worksheet and the trial simulation in the second?
THANK YOU
http://www.2shared.com/file/mlX4O40j/ProjectNPVandTrial.html