Complete the following problem and upload the Excel file of your solution to Canvas.

For a new product, sales volume in the first year is estimated to be 100,000 units and is projected to grow at a rate of 7% per year. The selling price is $10, the per-unit variable cost is $3, and the annual fixed cost is $200,000.

1. Develop a spreadsheet model to calculate the net present value (NPV) of profit over a three-year period, assuming a 7% discount rate.
2. If the first year sales follows a normal distribution with mean of $100,000 and standard deviation of $50,000, and the annual fixed cost follows a uniform distribution between $150,000 and $250,000, what is the risk that the NPV over the three years will not exceed $300,000? (Simulate for a 1000 trials)