Use the table below to answer the following question(s).
Below is the spreadsheet for a project selection model.

-What is the value of standard deviation obtained from the simulation results? [Hint: Choose the approximate value.]
A)$ 89,236
B)$ 177,334
C)$ 236,745
D)$ 107,892

Question

Use the table below to answer the following question(s).
Below is the spreadsheet for a project selection model.
 
-What is the value of standard deviation obtained from the simulation results? [Hint: Choose the approximate value.]
A)$ 89,236 
B)$ 177,334 
C)$ 236,745 
D)$ 107,892

Quizplus · Accepted Answer

The best choice is Project 5 because it has the highest Net Present Value (NPV) and the highest Internal Rate of Return (IRR) among all the projects. It also has a low risk profile as its standard deviation is around 177,334, which is less than the standard deviation of Project 2 and Project 4. Project 1 and Project 3 have lower NPVs and IRRs, so they would not be the best choice.

Use the Table Below to Answer the Following Question(s)