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

question 82

Multiple Choice

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 trials to generate the simulation model using Crystal Ball.
-In the NPV forecast chart generated after running the simulation,you enter the number 0 in the right range box of the forecast chart and press the enter key.What exactly is the result of the above action?

• A)The percentage of risk that the NPV over the five years will not be positive is determined.
• B)The cumulative profit over the five year range is determined.
• C)It determines the number of trials to be specified in the Run Preferences item of the Run group.
• D)It determines the number of trials shown in the NPV forecast chart.

---

Definitions:

Supply

The total amount of a product or service available for purchase at any given time.

Equity Funds

Investment funds that primarily invest in stocks, aiming to provide investors with growth or income.

Indexed

The process of adjusting payments or values according to changes in a specified index, typically related to inflation or other economic indicators.

Management Costs

Expenses related to directing and controlling a business or part of a business, including salaries of managers and costs of administrative services.