Simulating the npv distribution and displaying results

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Data table simulation

Revenue growth for the 1st 3 years is flat at 40,000; then it increases by 3% going forward but the rate of revenue growth could be as low as 1 and as high as 5% the product is new; so no impact from competitors till year 3 at that point they come at us at a rate of 20% indefinitely the discount rate may vary between 8 and 12%

Operations and Maintenance varies betwwe 15 and 30,000

Our initial commitment is $100,000

We can sell some of our fixed assets in year 10 for 18,000

Provide an analysis of the feasibility of this project by simulating the NPV distribution and displaying the results in a dynamic histogram

Answer the following questions. What is the likelihood of this project being profitable? What is the chance making at least $60,000?

Reference no: EM132890517

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