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NPV of a Project & Trial Simulation!!

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    03-10-2012
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    Excel: Mac 2011
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    Exclamation NPV of a Project & Trial Simulation!!

    Hey guys. Hope you are doing good and in the mood to help a brother out. My first post was closed cause of a cross post, so i am posting the cross post link (no one has replied there btw)
    http://www.mrexcel.com/forum/showthr...58#post3074658



    I have been working on a project that I need to solve the NPV for...I made out the income statement and I believe I have the values correct. I also calculated the NPV for the project using the CFFA, but could anyone help me in making sure these are correct?

    The second question I have is running a 250 trial simulation of this project. I know I have to use the NORM.INV function to get random variables for the growth and inflation rate, but I'm not sure how to place it.

    Growth Rate: mean 10%, Standard Deviation 4%
    Inflation Rate: mean 3.2%, Standard Deviation .75%

    Once I run the simulation (how do I do that?) How can i figure out the mean and standard deviation of the NPVs collected. What is the probability the NPV will be positive based on the simulation results?

    I have already completed as much as I know how to, can someone help me out with the NPV and break even price for year 1 in the first worksheet and the trial simulation in the second? I have excel for MAC so i don't know how to compute random numbers like the f9 key in windows.

    THANK YOU
    Attached Files Attached Files
    Last edited by hmk90; 03-10-2012 at 04:19 PM. Reason: Std. Dev for growth rate changed to 4%. no big deal

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