1. Jane is about to invest $30,000 into a new business. She has determined the following probability distributions for the revenue that she expects to earn from this new business within the next three years:
2. First-year revenue has a normal distribution with a mean value of $22,500 and a standard deviation of $1,500.
3. Second-year revenue has a lognormal distribution with a mean value of $17,300 and a standard deviation of $1,200.
4. Third-year revenue has a triangular distribution with a minimum of $16,500, a most likely amount of $22,000, and a maximum of $27,000.

The yearly operational cost of the business is expected to be $3,000 in the first year. The operational cost in the following years is expected to increase at an inflation rate of 1%. The depreciation expense of the store is $5,000 annually. The annual income tax rate is 34%. Jane wants to determine the cumulative discounted cash flow distribution to decide if she should invest in this investment opportunity. Assume the yearly discount rate for time-value-of-money calculations is 2%. Build a Crystal Ball simulation for Jane's problem. Note that the initial investment will be included in cash flow calculations. Run the simulation model for 1000 replications and plot the histogram of her cumulative discounted cash flow.

1. If Jane wants a cumulative discounted cash flow of at least $10,000, what is your recommendation to Jane? Explain.
2. Submit your Crystal Ball file in Canvas.