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

question 17

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 left range box of the forecast chart and press the enter key.What exactly is the result of the above action?

• A)It determines the percentage of risk that the NPV over the five years will not be positive.
• B)It determines the probability of a positive NPV value.
• C)It determines the cumulative profit over the five year range.
• D)It determines the number of trials shown in the NPV forecast chart.

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Definitions:

Intrinsic Motivation

A drive to act based on internal rewards, like personal satisfaction or the joy of performing the activity itself, rather than external incentives.

Quality Of Performance

The degree to which an activity, task, or job is executed with high standards, accuracy, and efficiency, often measured against predetermined criteria.

Intrinsic Motivation

The drive to perform an activity for its inherent satisfaction and enjoyment, rather than for some separable consequence.

Extrinsic Motivation

Refers to motivation driven by external rewards such as money, fame, grades, and praise.