RE: Team Project #2---Problem #2

I worked with Pat on #1. Please find attached what Pat and I put together
for #1

Regards,

-- Shawne

-----Original Message-----
From: Jeff.Dasovich@enron.com [mailto:Jeff.Dasovich@enron.com]
Sent: Saturday, May 06, 2000 10:52 AM
To: pbukowski@acex.com
Cc: cvavrek@dttus.com; dennis.sidbury@prudential.com; shawne@harmony.com
Subject: Team Project #2---Problem #2

I think Dennis, Shawne and I were supposed to work more on #2, but since I
can't recall, I'm sending to all.

First, I apologize. I tried to work directly with the excellent
spreadsheet Carolyn put together, but I kept fumbling, butchering, etc. So
I canibalized her great stuff and created a new spreadsheet, attempting to
incorporate the "clarifications" (yeah, right) that Prof McCullough
distributed via email, and the stuff we talked about during break (i.e.,
timing of cash flows). The answers are at the bottom of the work sheet.
And I've also included the report (though I did not peruse it for errors,
relevancy, etc.).

My biggest concern is question 6. My answer (despite some outliers) sez
that there ain't no loan in June. (This may mean my spreadsheet's got a
fatal flaw--significant probability.)

Finally, doing a series of 1,000 trials resulted in some considerable
variability across runs--again, could be due to screw up on my part--so the
answers I generatd comes from a run of 5,000 trials. (If you run the
sheet, beware, 5,000 takes some time, unless you've got DSL or something.)

Let me know if this is completely out to lunch, or if you're coming up with
something remotely similar.

Best,
Jeff

(See attached file: Problem #2--Dasovich version.xls)(See attached file:
Report for Dasovich Problem #2.xls)

- problem 1.xls
- team assignment 2-1.doc