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.
PALISADE INSIGHT 