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HW #$5$: Due Sunday March $9$th

You are the CFO of Adidas which is considering launching a new tennis racket. It expects to sell the rackets for $5$ years and the equipment required to produce these rackets will be bought and depreciated on a straight$-$line basis. The equipment has no salvage value. The company requires a return of $13\%$ from this project and is in the $20\%$ tax bracket. You come up with the following estimates. Use Monte Carlo simulation to evaluate the project.

$\backslash$table$[[$Market size,$90,000-120,000,],[$Market share,$20\%-25\%,],[$Selling price$/$racket$,145-155,],[$Variable cost$/$racket$,85-95,],[$Fixed costs per year,$885,000-980,000,],[$Initial investment,,$2,000,000$