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Assume the company that is selling the equipment is offering the following service plan with their equipment: If the operating costs in a given year

Assume the company that is selling the equipment is offering the following service plan with their equipment: If the operating costs in a given year exceed $5,100 they will pay for the additional costs. For example, if the operating costs in a given year are $5,300 then they are going to give Big B $200, if the costs are $5,150 then they will give Big B $50. If the operating costs turn out to be $4,800 then nothing happens. Incorporate this adjustment in your model (you will need to use the IF function), re-run the simulation and answer the following questions. Include a copy of the simulation report in the files you post (name this workbook Simulation 2 results).
a) What is the expected NPV with the service plan?
b) What is the probability of getting a negative NPV? Does it improve compared to Q2?
c) How much would you be willing to pay for a service plan like this and why?

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