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Use the Data Shown Below to Answer the Following Question(s)

Question 3

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Use the data shown below to answer the following question(s) .
Captain Jack Automobiles launched a new car and tabulated the below data for the new launch. Use the data shown below to answer the following question(s) . Captain Jack Automobiles launched a new car and tabulated the below data for the new launch.   The project manager identified the following distributions and parameters for these variables: Market size: normal with a mean of 2,000,000 units and a standard deviation of 400,000 units R&D costs: uniform between $639,000,000 and $781,000,000 Test Drives: lognormal with mean of $160,000,000 and standard deviation $16,000,000 Annual market growth factor: triangular with minimum = 2%,maximum = 6%,and most likely = 3% Annual market share growth rate: triangular with minimum = 15%,maximum = 25%,and most likely = 20% Use 5,000 trails to generate the simulation model for NPV using Crystal Ball. -Using the Tornado Chart tool,determine the assumption that has the least impact on the cumulative net profit for year 1. A) Market size B) R&D C) Test Drives D) Time of cash flow The project manager identified the following distributions and parameters for these variables:
Market size: normal with a mean of 2,000,000 units and a standard deviation of 400,000 units
R&D costs: uniform between $639,000,000 and $781,000,000
Test Drives: lognormal with mean of $160,000,000 and standard deviation $16,000,000
Annual market growth factor: triangular with minimum = 2%,maximum = 6%,and most likely = 3%
Annual market share growth rate: triangular with minimum = 15%,maximum = 25%,and most likely = 20%
Use 5,000 trails to generate the simulation model for NPV using Crystal Ball.
-Using the Tornado Chart tool,determine the assumption that has the least impact on the cumulative net profit for year 1.


A) Market size
B) R&D
C) Test Drives
D) Time of cash flow

Correct Answer:

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