Calculate the expected value and standard deviation for the following distribution: a 10% chance of a massive project success, with profits of $1 million; a 65% chance of moderate project success, with profits of $100,000, and a 25% chance of the project bombing, with losses of -$200,000.
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Calculate the expected value and standard deviation for the following distribution: a
10% chance of a massive project success, with profits of $1 million; a 65% chance of
moderate project success, with profits of $100,000, and a 25% chance of the project
bombing, with losses of -$200,000.
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- Stinnett Transmissions, Incorporated, has the following estimates for its new gear assembly project: Price $1,220 per unit; variable costs = $3.75 million; quantity = 90,000 units. Suppose the company believes all of its estimates are accurate only to within ±15 percent. What values should the company use for the four variables given here when it performs its best-case scenario analysis? What about the worst-case scenario? Pls don't copy answer i give up voteKiley Electronics is considering a project that has the following cash flow data. What is the project's IRR, and should the firm accept the project based on IRR if its WACC is 13.00%? Year 0 1 2 3 Cash flows -$1,100 $450 $470 $490 13.31%; Accept 13.31%; Reject -14.64%; Reject 11.98%; Accept 11.98%; Reject1.) You have determined the following for a given project: Expected completion time of the project = 40 weeks Standard deviation of project completion time = 8 What is the probability of completing the project in more than 44 weeks? answer as a decimal and take it to four places.
- Create a risk matrix for this project:Event Cost ($000) ProbabilityEquipment breakdown 40 .20Vendor is late with key segment 200 .60Subcontractor has labor issues 140 .30Weather problems 15 UnknownFunding delays 50 .40 to .60Testing delays 20 .40Explain your reasoning for your placement of the events Weather problems and Funding delays.A company currently in the 3rd month of a 2 year project. The financial committee would like to have a cost status report. At this stage of the project there is an estimated planned value of 37500. The rate of performance is determined at 95% and the current costs have accumulated to 400000. Determine the EVM performanceAnalyse the sensitivity analysis and summarise the implications of the analysis for the project, Property acquisition 50%, financing 70% and construction 50%.
- Suppose the due date of the project is 24 months and expected time of completion is 28 months, while the probability of completing it is 90%. What will be the standard deviation?A 4-year financial project has net cash flows of $20,000; $25,000; $30,000; and $50,000 in the next 4 years. It will cost $75,000 to implement the project. If the required rate of return is 0.2, conduct a discounted cash flow calculation to determine the NPV.Randall Systems in considering four projects A, B, C and D that have risks associated with the producing benefits. Based on the information given in the table below, which project is more desirable for the company? Project A Project B Project C Project D EUAW Prob. EUAW Prob. EUAW Prob. EUAW Prob. $2,000 0.2 $3,000 0.1 -$5,000 0.2 $4,000 0.4 $1,500 0.5 -$2,500 0.4 $6,500 0.5 $2,500 0.3 $3,000 0.3 $3,500 0.5 $1,000 0.3 -$2,000 0.3
- Investment timing option: left Table shows the investment made now (year 0); right Table shows the investment made 1 year later. Discount rate is r = 10%. Probability Year 0 0.50 -$28 0.50 -$10 $11 None of the others is correct $10 Year 1 $55 $22 If this project's uncertainty in Year 0 (two scenarios with 50% chance each) is completely gone right after the end of year 0, i.e., you will know which scenario turns out to be true right after Year 0, then what is the value of this investment timing option today? [Hint: value of the option = E[NPV with option] - E[NPV] =?] 3 Year 2 $0 Probability Year 0 0.50 $0 0.50 Year 1 -$28 -$28 Year 2 $55 $22an engineer proposes to spend $95,000 on a capital project to upgrade a package delivery system. The project is expected to have labor savings of $20,000 a year plus reduce scrap costs by $5,000 a year. There is expected to be no salvage value at the end of the equipment life, which is anticipated to be 7 years. MARR is 12% What is the present worth of this project?The following information relates to a project (task times are in weeks). Use the information to solve for the critical path and then to determine the probability that the project could be completed within 36 weeks. Task A B C D E F Preceding Tasks to 4 4 2 None A B D, E tm 6 7 7 8 13 9 8 0 W CON 6 tp 8 10 12 18 15 10 Click the icon to view the table of standard normal probabilities. The probability that the project is completed within 36 weeks is. (Enter your response rounded to four decimal places.)