Develop a simulation spreadsheet that generates 100 random values for the three variables below. For each of the 100 simulation runs, compute NPW using a MARR of 12%. Plot a histogram of the distribution of values obtained. Compute the mean and standard deviation of the 100 NPW values. Assuming a normal distribution, find the probability that your project is acceptable (NPW>0). Variable Distribution Parameters Initial Investment Normal μ=50,000 σ=10,000 Annual Benefits Uniform a=10,000 b=25,000 Life Discrete N=4 with prob 0.33 N=5 with prob 0.55 N=6 with prob 0.12 Hint: (enter the actual formula for (P/A,12%, N) when trying to have Excel find PW of the benefits) Please attach your actual excel file in the solution, thank you.
Develop a simulation spreadsheet that generates 100 random values for the three variables below.
For each of the 100 simulation runs, compute NPW using a MARR of 12%. Plot a histogram of the
distribution of values obtained. Compute the mean and standard deviation of the 100 NPW values.
Assuming a
Variable Distribution Parameters
Initial Investment Normal μ=50,000 σ=10,000
Annual Benefits Uniform a=10,000 b=25,000
Life Discrete N=4 with prob 0.33
N=5 with prob 0.55
N=6 with prob 0.12
Hint: (enter the actual formula for (P/A,12%, N) when trying to have Excel find PW of the benefits)
Please attach your actual excel file in the solution, thank you.
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