Discount Net PresenInflation Rate of Capital Cost

Year Inflow Outflow Net Flow Factor Value Rate, p

A B C D=B-C E=1/(1+k+p)t D*E
2010* 125,000 (125,000) 1 (125,000) 0.03 0.12
2010 0 100,000 (100,000) 0.8696 (86,957) 0.03 0.12
2011 0 90,000 (90,000) 0.7561 (68,053) 0.03 0.12
2012 50,000 50,000 0.6575 32,876 0.03 0.12
2013 120,000 15,000 105,000 0.5718 60,034 0.03 0.12
2014 115,000 - 115,000 0.4972 57,175 0.03 0.12
2015 105,000 15,000 90,000 0.4323 38,909 0.03 0.12
2016 97,000 - 97,000 0.3759 36,466 0.03 0.12
2017 90,000 15,000 75,000 0.3269 24,518 0.03 0.12
2018 82,000 82,000 0.2843 23,310 0.03 0.12
2019 65,000 65,000 0.2472 16,067 0.03 0.12
2019 35,000 35,000 0.2472 8,651 0.03 0.12

Total 759,000 360,000 399,000 17,997

cast Name ent Value of Project

Trials 1,000
Mean 14,597
Median 14,699
Mode ---
Deviation 7,345
Variance 53,955,600
Skewness -0.1400
Kurtosis 2.99
Variability 0.5032
Minimum (9,068)
Maximum 37,410
Std. Error 232
10% (156,094)
90% 233,085
Rate of Capital Cost
Pessimistic, Most Likely and Optimistic Estimates of the Cash Flows for PsychoCeramic Sciences, Inc.
Year Minimum Inflow Most Likely Inflow Max Inflow
2012 $ 35,000.00 $ 50,000.00 $ 60,000.00
2013 95,000.00 120,000.00 136,000.00
2014 100,000.00 115,000.00 125,000.00
2015 88,000.00 105,000.00 116,000.00
2016 80,000.00 97,000.00 108,000.00
2017 75,000.00 90,000.00 100,000.00
2018 67,000.00 82,000.00 91,000.00
2019 51,000.00 65,000.00 73,000.00
2019 (salvage) 30,000.00 35,000.00 38,000.00
Total $ 621,000.00 $ 759,000.00 $ 847,000.00
Six steps to enter information for Monte Carlo simulation
For Inflows
Step 1 Click on Cell B7 (2012 inflow) to identify it as the relevant assumption cell
Step 2 Select "Define Assumption"
Step 3 Click on BetaPERT or Triangular box
Step 4 Make sure that "Minimum, Most Likely, Maximum" is at the top of the drop-down menu
Step 5 In the "Assumption Name" textbox at the top of the distribution box, enter a descriptive Label, for example,
Step 6 Click on "Enter" and then on "OK"
Now repeat steps 1-6 for the remaining cash flow assumption cells.

For Inflation Rate

Follow the six-step procedures as above for inflation rate
Note that inflation rate follows normal distribution with mean of 3%, plus or minus %.
bel, for example, Cash Inflow 2012. Then enter the pessimistic, most likely and optimistic estimates from Table 7-4 in the appropriate cells
4 in the appropriate cells below the distribution