Monte Carlo Simulation of a Project NPV
This lesson is part of the course
In this lesson
You turn 60 given random numbers into 30 possible futures for the small plant, then read the expected NPV, the chance of a loss and the shape of the distribution.
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Lessons in this course
- Payoff Tables & Decision Criteria: Maximax, Maximin, Regret and EV Locked
- Decision Trees: Rolling Back Chance and Decision Nodes Locked
- Value of Perfect Information (EVPI) Locked
- Value of Sample Information: Bayes Update of a Market Survey Locked
- Risk Attitude & Utility: Certainty Equivalents with Exponential Utility Locked
- Monte Carlo Simulation of a Project NPV Locked
- Sensitivity Tornado: Which Uncertainty Drives the NPV? Locked
- Real Options: The Value of Waiting and of Expanding Locked