Purchase Solution

Calculating Negative Predictive Value (Statistics)

Not what you're looking for?

Ask Custom Question

Modify Acron's model (Excel filed attached) so that development lasts for an extra year. Specifically, assume that development costs of $7.2 million and $2.1 million are incurred at the beginnings of years 1 and 2, and then the sales in the current model occur one year later, that is from year two until year 21. Again, calculate the negative predictive value (NPV) discounted back to the beginning of year 1, and perform the same sensitivity analyses. What are some of the effects of this change in timing?

Purchase this Solution

Solution Summary

This solution includes explanations and calculations for a negative predictive value and same sensitivity analyses.

Solution Preview

Attached to this answer, you will find the modified Excel sheet you need. I made the following changes:

- Define range names "Development_cost_Y1" and "Development_cost_Y2", in order to separate the development costs that are incurred in the first year (Y1) and in the second one (Y2)

- Move the cash flows one ...

Purchase this Solution


Free BrainMass Quizzes
Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.

Know Your Statistical Concepts

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.

Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.