RMT 559 Final Exam Answer Sheet
Index Number: 20021
Question 2
Annual
expected profit intial cost maintenance
25000 75000 5000
35000 110000 10000
92435.1314
32160.41324 98818.73645 6358.225229
26378.13372 102027.9751 6647.230797
34120.87911 89326.34884 9618.941707
30662.02257 109589.2284 9470.198145
34919.76387 99686.03845 6005.564765
30386.51717 81603.39077 5897.253923
25153.5653 109135.3402 6984.497499
30329.55763 102729.6944 8042.720457
28121.63197 100018.425 7273.636706
32049.51954 77070.86848 8316.779902
33568.78431 107671.5337 5233.252501
32559.37029 79223.36558 8945.003902
25189.56154 81668.92293 9259.286649
26635.87349 79487.71221 5780.203119
28791.21764 95841.2828 5064.509468
25867.76685 99179.40568 9613.68799
26086.46921 106212.2037 6278.771898
28776.77762 100432.8406 5730.69658
25905.16548 82838.4316 7009.260217
28300.64678 97608.41936 5808.470372
31252.45725 99976.17245 9577.533506
32050.84936 82371.69593 5802.278085
27852.46162 77202.16297 5382.718285
26775.95456 87398.21478 7553.479772
27608.05165 82750.60591 5806.043556
27087.58275 98241.45698 6343.800114
27334.8534 88729.92296 6676.046085
RMT 559 Final Exam Answer Sheet
Index Number: 20021
Question 2
32724.00496 107639.4128 9287.754685
26001.92421 88492.25678 7364.258904
27363.16552 90246.95931 7486.095039
27993.63613 100999.6917 5869.718701
year 1 year 2 year 3 year 4 year 5 year 6 year 7 year 8
23890.9 22121.2 20482.6 18965.3 17560.5 16259.7 15055.3 13940.1
1 2 1 8 4 6 3 2
18269.3 16916.0 15663.0 13428.5 12433.8 11512.7 10659.9
5 7 3 14502.8 2 2 9 9
22686.9 21006.4 19450.4 18009.6 16675.6 15440.3 14296.6 13237.6
8 6 3 6 1 8 5 3
19622.0 18168.5 16822.7 15576.6 13354.4 12365.2 11449.2
6 7 5 2 14422.8 4 3 8
26772.4 24789.2 22953.0 19678.5 18220.8 16871.1 15621.4
1 7 2 21252.8 2 5 6 4
22675.2 19440.3 18000.3 16666.9 15432.3 14289.2 13230.7
4 20995.6 7 4 8 9 5 9
16823.2 15577.0 14423.1 13354.8 12365.5 11449.5 10601.4 9816.18
1 5 9 1 6 9 8 2
20635.9 19107.3 17692.0 16381.4 15168.0 14044.4 13004.1 12040.8
6 7 1 9 5 9 6 8
16549.8 13137.7 11263.5
19303.7 17873.8 1 15323.9 14188.8 7 12164.6 2
21974.7 18839.8 17444.2 14955.6 13847.8 12822.0
6 20347 1 7 16152.1 5 3 6
24293.1 22493.6 20827.4 19284.6 17856.1 16533.5 15308.8
26236.6 5 6 6 9 9 1 1
21865.1 20245.5 18745.8 17357.2 16071.5 14881.0 13778.7 12758.1
5 1 5 6 4 6 6 1
14750.2 13657.6 12645.9 11709.2 10841.8 10038.7 9295.16 8606.63
5 4 7 3 8 8 2 2
19310.8 17880.3 15329.5 14194.0 13142.6 12169.0 11267.6
1 8 16555.9 4 2 1 8 7
21969.1 20341.8 18835.0 17439.8 14951.8 13844.3
7 3 3 4 16148 5 1 12818.8
15050.0 13935.2 12903.0 11947.2 11062.2 10242.8 9484.09 8781.57
7 5 1 3 5 3 9 3
18340.4 16981.9 15723.9 14559.2 13480.7 12482.2 10701.4
6 1 9 5 9 1 11557.6 8
21338.9 18294.7 16939.5 15684.7 14522.9 13447.1 12451.0
6 19758.3 2 6 8 4 7 8
17496.2 16200.1 15000.1 13889.0 12860.2 11907.6 11025.5 10208.8
1 9 8 5 4 3 8 7
20826.0 19283.4 17855.0 16532.4 15307.8 14173.8 13123.9 12151.8
RMT 559 Final Exam Answer Sheet
Index Number: 20021
Question 2
9 2 1 2 9 7 2
20069.3 18582.7 17206.2 15931.7 14751.5 13658.8 12647.1 11710.2
7 5 5 2 9 8 1 9
24304.2 22503.9 20836.9 19293.4 17864.3 16541.0 15315.7 14181.2
3 2 6 8 4 5 9 9
20805.3 19264.1 17837.2 16515.9 15292.5 14159.7 13110.8
2 8 1 3 3 5 8 12139.7
17798.5 16480.1 15259.4 14129.0 13082.4 12113.4 11216.1 10385.3
9 7 2 9 9 2 3 1
20187.0 18691.7 17307.1 16025.1 14838.0 13738.9 12721.2 11778.9
4 1 4 3 8 6 6 5
19207.2 17784.4 16467.0 14117.8 11207.2
1 5 8 15247.3 7 13072.1 12103.8 2
19128.5 16399.6 15184.8 14060.0 13018.5 12054.2 11161.3
3 17711.6 3 4 4 5 2 1
21700.2 20092.8 18604.4 17226.3 15950.3 14768.8 13674.8 12661.8
3 1 5 4 2 1 3 8
15978.7 14795.1 13699.2 12684.4 11744.8 10069.3
17257.1 9 8 4 8 9 10874.9 5
18404.6 17041.3 15779.0 14610.2 12525.9 11598.0 10738.9
9 8 6 4 13528 3 8 6
20485.1 18967.6 17562.6 16261.7 15057.1 13941.8 12909.0 11952.8
1 9 8 4 7 2 9 6
Min : 10069.35
Max : 26772.41
(i) the best scenario will be $ 26772.41 and the worst scenario will be $10069
(ii) as a risk manager from the analysis using monte-carlo simulation to calculate the NPV for the
investment, the result shown that in 8 years of the investment the figure is positive which is
$57879.998
As the Npv:
23890.91
year 1 22121.22 20482.61 18965.38 17560.54 16259.76 15055.33 13940.12
Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8