Day: July 24, 2012

Video: New Product Projection using NPV, in @RISK

In evaluating a business decision, oftentimes Net Present Value is used to make a determination of whether a opportunity is worth pursuing. In this short video, Thompson Terry looks at a new product projection analysis, where a new specialty product is being brought to market. The product has a high selling price, but a small number of sales units. The analysis is looking to determine if this is an opportunity worth pursuing, by using Net Present Value in a Cash Flow analysis.

The analysis is completed in @RISK, a Microsoft Excel add-in for risk analysis using Monte Carlo simulation.

» New Product Projecting using NPV, in @RISK

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