Multiple Choice
Use the information below to answer the following question(s) .
Below is a spreadsheet for Trance Electronics.
Suppose that the project manager of Trance Electronics has identified the following uncertain variables in the model and the distributions and parameters that describe them, as follows:: normal with mean of 2,000,000 units and standard deviation of 400,000 units.
: uniform between $600,000,000 and $800,000,000.
: lognormal with mean of $150,000,000 and standard deviation $30,000,000.
: triangular with minimum = 2%, maximum = 6%, and most likely = 3%.
: triangular with minimum = 15%, maximum = 25%, and most likely = 20%.
The number of trials per simulation is equal to 10,000 at a Sim.Random Seed of 2.Run the simulation and answer the following questions using the Risk Solver Platform.
-What is the risk that the net present value over the 5 years will not be positive?
A) approximately 40%
B) approximately 57%
C) approximately 24%
D) approximately 76%
Correct Answer:

Verified
Correct Answer:
Verified
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