please send me answer in type form strictly prohibited handwritten solution.

Orange Tech (OT) is a software company that provides a suite of programs that are essential to everyday business computing. OT has just enhanced its software and released a new version of its programs. For financial planning purposes, OT needs to forecast its revenue over the next few years. To begin this analysis, OT is considering one of its largest customers. Over the planning horizon, assume that this customer will upgrade at most once to the newest software version, but the number of years that pass before the customer purchases an upgrade varies. Up to the year that the customer actually upgrades, assume there is a 0.50 probability that the customer upgrades in any particular year and that the customer will upgrade in 25 years if they haven't already by that point. In other words, the upgrade year of the customer is a (discrete) random variable. For guidance on an appropriate way to model upgrade year, refer to Appendix 13.1. Furthermore, the revenue that OT earns from the customer's upgrade also varies (depending on the number of programs the customer decides to upgrade). Assume that the revenue from an upgrade obeys a normal distribution with a mean of $100,000 and a standard deviation of $25,000.

(a)

Construct a simulation model that computes the net present value of the revenue from the customer upgrade. Hint: Excel's NPV function computes the net present value for a sequence of cash flows that occur at the end of each period. To correctly use this function for cash flows that occur at the beginning of each period, use the formula

=NPV(discount rate, flow range) + initial amount,

where discount rate is the annual discount rate, flow range is the cell range containing cash flows for years 1 through n, and initial amount is the cash flow in the initial period (year 0). Use an annual discount rate of 10%. (Use at least 1,000 trials.)

What is the average net present value (in $) that OT earns from this customer? (Round your answer to two decimal places.)

$ _____

(b)

What is the standard deviation of net present value (in $)? (Round your answer to two decimal places.)

$ _____