Financial Terms for Project Managers Video 2: NPV and IRR

[@ie95_Moh]

Assalamualaikum Dr. Mustafa Can you make a video about dynamic payback period:- Imagine a project that has a net cash flow that is normally distributed in average of $100k and StDev of $65k. Use monte carlo technique in excel to estimate the npv and the discounted payback period of that project over its 10 years lifespan (i= 10%). Based on the result obtained do you think this project is benefecial and profitable?? Nice question sir please make video

[@ie95_Moh]

As you can see, I intentionally make a very high standard deviation in order to make sure than in sometimes we will get a conventional cash flows, and in another replication we will get a non-conventional cash flows (more than one negative), so I want to show us how to evaluate that stochastic project not only based on npv which is always not have any problem but with other tools such as discounted payback period and other you might add IRR or just keep it with npv and DPBP.