An electric vehicle company is debating whether to replace its original model, Model X, with a new model, Model Y, which would appeal to a younger audience. Whatever vehicle is chosen, it will be produced for the next four years, after which time a reevaluation will be necessary. Develop a four-year Monte Carlo simulation model using 50 trials to recommend the best decision using a net present value discount rate of 5%. Click here to view the descriptions of the two models. Set up a spreadsheet model and calculate the difference in the net present values in thousands of dollars (NPV) for producing Model X or producing Model Y using the means for uncertain values with normal distributions and the most likely values for uncertain values with triangular distributions. NPV ( Model Y) NPV ( Model X)=$ thousand (Round to the nearest thousand dollars as needed.) Model descriptions Model Y has passed through the concept and initial design phases and is ready for final design and manufacturing. Final development costs are estimated to be $65 million, and the new fixed costs for tooling and manufacturing are estimated to be $550 million. Model Y is expected to sell for $31,000. The first year sales for Model Y are estimated to be normally distributed with an average of 65,000 /year and standard deviation of 11,000/y ear. The sales growth for subsequent years is estimated to be normally distributed with an average of 5% and standard deviation of 2%. The variable cost per vehicle is uncertain until the design and supply-chain decisions are finalized, but is estimated to be between $20,000 and $28,000 with the most likely value being $22,000. Next-year sales for the Model X are estimated to be 55,000 with a standard deviation of 8,000/ year, but the sales are expected to decrease at a rate that is normally distributed with a mean of 9% and standard deviation of 4% for each of the next three years. The selling price is $30,000. Variable costs are constant at $21,000. Since the model has been in production, the fixed costs for development have already been recovered. An electric vehicle company is debating whether to replace its original model, Model X, with a new model, Model Y, which would appeal to a younger audience. Whatever vehicle is chosen, it will be produced for the next four years, after which time a reevaluation will be necessary. Develop a four-year Monte Carlo simulation model using 50 trials to recommend the best decision using a net present value discount rate of 5%. Click here to view the descriptions of the two models. Set up a spreadsheet model and calculate the difference in the net present values in thousands of dollars (NPV) for producing Model X or producing Model Y using the means for uncertain values with normal distributions and the most likely values for uncertain values with triangular distributions. NPV ( Model Y) NPV ( Model X)=$ thousand (Round to the nearest thousand dollars as needed.) Model descriptions Model Y has passed through the concept and initial design phases and is ready for final design and manufacturing. Final development costs are estimated to be $65 million, and the new fixed costs for tooling and manufacturing are estimated to be $550 million. Model Y is expected to sell for $31,000. The first year sales for Model Y are estimated to be normally distributed with an average of 65,000 /year and standard deviation of 11,000/y ear. The sales growth for subsequent years is estimated to be normally distributed with an average of 5% and standard deviation of 2%. The variable cost per vehicle is uncertain until the design and supply-chain decisions are finalized, but is estimated to be between $20,000 and $28,000 with the most likely value being $22,000. Next-year sales for the Model X are estimated to be 55,000 with a standard deviation of 8,000/ year, but the sales are expected to decrease at a rate that is normally distributed with a mean of 9% and standard deviation of 4% for each of the next three years. The selling price is $30,000. Variable costs are constant at $21,000. Since the model has been in production, the fixed costs for development have already been recovered