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CORRECTION: Starting at minute 14:05 I say something that in a way that can be misleading. We are not building the confidence interval (CI) for the NPV. We are building the CI for the average NPV. If you go to minute 14:05 of the video, the CI in row 20 means: there's a 95% chance that the average NPV will be between 27.89 and 34.68 million. This does not mean there's a 95% chance the NPV from a single simulation will be between 27.89 and 34.68. To calculate this latter chance, you go to the cumulative charts at minute 15:44. That chance would be approximately 16.35 - 13.9 = 2.45%. Notice the difference between these two things. I added a warning about this to the closed captions as well.
The simulation add-in I am using in this video: treeplan.com/s... (I'm not sponsored by this company).
What's the expected NPV of cashflows for a 5-year project? What's the chance the project will result in a loss? This video was created for the benefit of my students in the MAS 632/641 classes at Miami Herbert Business School. The SimVoi add-in I am using can be purchased for a small fee (student version) at treeplan.com/. Disclaimer: I am not paid by that company. The reason I chose this add-in is because it works natively on both Mac and Windows computers.