CASH FLOW ESTIMATION AND RISK ANALYSIS Home Depot Keeps Growing Refer to Table 12-1 and answer these questions: (1) If the WACC increased to 15 percent, what would the new NPVbe? ($2,877) (2) Look at Part 1, Input Data. In what direction would NPV bechanged by an increase in each input variable? (3) If the […]
Tag Archives: Monte Carlo
How much will you have in your fund when you retire if your return is 12% per year.
Fleming Golf has decided to sell a new line of golf clubs. The clubs will sell for $1,200 per set and have a variable cost of 80% of revenues per set. The company has spent $350,000 for a marketing study that determined the company will sell 75,000 sets per year for seven years. The company […]
What the min, mean, max and standard deviation of the total ticket revenue?
Homework 11 A professional football team is preparing its budget for the next year. One component of the budget is the revenue that they can expect from ticket sales. The home venue, Dylan Stadium, has five different seating zones with different prices. Key information is provided. The demands are all assumed to be normally distributed. […]
Describe the schedule in the discussion forum, and explain why modeling the schedule would assist in managing the schedule risk and why taking the trouble to model the schedule would be important.
Consider a schedule in daily life that in your view would benefit from modeling using program evaluation and review technique (PERT), a Monte Carlo analysis, or both. Describe the schedule in the discussion forum, and explain why modeling the schedule would assist in managing the schedule risk and why taking the trouble to model the […]
