Reference no: EM131332879
Uncertain Scenario - Maximizing the Mean
The potential revenues of all projects are in fact uncertain. The company determines that the revenue for project 1 is following a uniform distribution ranging from $1,200,000 to $2,000,000. The revenue for project 2 is distributed normally, with a mean of $1,500,000 and a standard deviation of $200,000. The revenue for project 3 follows a triangular distribution with a minimum of $1,350,000, maximum of $1,600,000, and it is most likely to be $1,500,000. The revenue for project 4 is distributed normally, with a mean of $1,800,000 and a standard deviation of $800,000. The bank wants to find the optimal solution which takes all these uncertainties into account.
a) In Excel, formulate an LP model for this problem with the objective of maximizing total profit, incorporating all uncertainties.
b.) Find the optimal solution which can maximize the average uncertain profit.
c.) Past screen shots of your model with formulas, model with solutions, solver setting, simulation setting and the output distribution of the uncertain profit.
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Determine value of the levered firm
: An unlevered firm has a value of $850 million. An otherwise identical but levered firm has $90 million in debt. Assuming the corporate tax rate is 40%, use the MM model with corporate taxes to determine the value of the levered firm. Enter your answe..
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Determine the value of the levered firm
: An unlevered firm has a value of $850 million. An otherwise identical but levered firm has $90 million in debt. Assuming the corporate tax rate is 40%, use the MM model with corporate taxes to determine the value of the levered firm.
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Lessee analysis is the appropriate discount rate
: One of the key issues in the lessee’s analysis is the appropriate discount rate. What does lessee’s after-tax cost of debt mean? When is residual value used? What is a lessor’s analysis? What is a leveraged lease?
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Definition of the characteristics of the population
: Create an Agency (military mental health clinic) PowerPoint Presentation that includes the following: A definition of the characteristics of the population(s) served by your agency: (Serve the military population) and A description of the sources of ..
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Uncertain scenario-maximizing the mean
: The potential revenues of all projects are in fact uncertain. The company determines that the revenue for project 1 is following a uniform distribution ranging from $1,200,000 to $2,000,000.
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What is maturity risk premium for two-year security
: The real risk-free rate is 3%, and inflation is expected to be 3% for the next 2 years. A 2-year Treasury security yields 6.3%. What is the maturity risk premium for the 2-year security?
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An otherwise identical but levered firm
: An unlevered firm has a value of $525 million. An otherwise identical but levered firm has $50 million in debt. Under the MM zero-tax model, what is the value of the levered firm? Enter your answer in millions. For example, an answer of $1.2 million ..
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Examine the conversations of two married couples
: The narrative dialogues "Home Burial" and "The Death of the Hired Man" examine the conversations of two married couples. In a carefully constructed paper of 1,500-1,750 words, compare and contrast the two poems.
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Perfectly efficient market an active strategy mutual fund
: In a perfectly efficient market, an active strategy mutual fund that charges a 1% fee has about a 47% chance of beating the index net of fee. In a universe of 5,000 funds, how many funds would you expect to beat the index all but once out of the past..
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