Project is estimated to require an investment

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A project is estimated to require an investment of $25,000, have a life of 5 years and 0 salvage value and have an annual net cash flow that can be described by a symmetric triangular distribution with a = $5,000, and b = $12,000. If the minimum required rate of return is 15%. Using Excel, perform a Monte Carlo simulation for 100 observations and construct the distribution of the net PW. Calculate the E(PW) and the V(PW).

Reference no: EM13834798

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