A company is considering investing in a new machine that will cost $$100,000.$ The machine is expected to generate $$50,000$ in revenue per year for the next $5$ years. The company uses a discount rate of $10\%.$

Use a Monte Carlo simulation to estimate the expected return on investment $($ROI$)$ for the new machine.

Step$-$by$-$step instructions:

In Excel, create a new worksheet and enter the following data:

Machine cost: $$100,000$

Annual revenue: $$50,000$

Discount rate: $10\%$