Project cost analysis for Niepolomice Municipal Solid Waste using the Monte Carlo simulation

This paper is focused on the NPV forecast values for investment strategy in the form of an investment project for a municipal solid waste (MSW) dump in Niepolomice, near Krakow. Typical cash flow decision problem usually is analysed with ordinary spreadsheet models. The net present value of annual cash flow using the NPV function. Monte Carlo simulation modelling can understanding risk. Simulation software such an Decisioneering's Crystal Ball(R) can to help analyse and forecast risk situations Cristal Ball imparts the ability to quantify risk.. In the investment practice, the investment evaluation criterion, i.e. minimisation of risk in relation to the expected value NPV is realised through the maximisation of E(NPV) and minimisation of variance V(NPV) and standard deviation sigma (NPV). The benefits of Monte Carlo simulation are saving in time and resources. Crystal Ball eliminates the need to run, test, and present multiple spreadsheets. With Crystal Ball analysis we can show the benefit of investing more on a monthly basis. Crystal Ball can handle dozen assumptions simultaneously, and can establish correlation coefficients among variables.