Reder Electric Vehicles REVSport Selling Price First Year Sales Variable Cost Fixed Development Cost Fixed Tooling and Manufacturing Cost Financial Analysis First Year Sales Sales Volume Growth Rate Annual Sales Revenue Total Variable Cost Net Prot Net Present Value Difference {Sport Touring} $30,000.00 600000 $22,000.00 $75,000,000 $600.000.000 Year1 60000 6% 60000.0 $1.000.000.000 $675,022,000 $1.124.97B.000 $5,147,912.00000 $367,996,00000 Year 2 Year 3 lYearAl 60000.0 60000.0 60000.0 6.00% 6.00% 6.00% 63600.0 67200.0 70800.0 $1.908.000.000 $2.016.000.000 552.124.000.000 $675,022,000 $675,022,000 $675,022,000 $1.232.978.000 $1.340.978.000 551.448.978.000 REVTouring Selling Price $26,000.00 First Year Sales 50000.0 Variable Cost $21,000.00 Financial Analysis Year1 Year2 YearIl First Year Sales 50000.0 50000.0 50000.0 Sales Volume Shrink Rate 10% 10% 10% Sales Volume 50000.0 45000.0 40000.0 Revenue $1.400.000.000 $1.260.000.000 $1.120.000.000 Total Variable Cost $21,000 $21,000 $21,000 Net Prot $1.399.979.000 $1.259.979.000 $1.119.979.000 Net Present Value $4,759,916,00000 Year 4 50000.0 10% 35000.0 $900.000.000 $21,000 $979.979.000 4' Based on Ch 12. The EV manufacturer asks you to conduct a more in depth risk analysis for their vehicle models. You gather more data and compute that the rst-year sales for the Sports model are estimated to be normally distributed with an average of 60'000lyear and standard deviation ot'12.000/yearl You learn that the sales growth for subsequent years is estimated to be normally distributed with an average of 6% and standard deviation of 2% The variable cost per vehicle is uncertain until the design and supply-chain decisions are nalized. but is estimated to be between $20000 and $20000 with the most likely value being $22000 Next-year sales for Touring are estimated to be 500% with a standard deviation of 9'000Iyear. but the sales are expected to decrease at a rate that is normally distributed with a mean ot'10% and standard deviation of 35% for each of the next three years. The selling price is $2B'000' Variable costs are constant at $21.000. Develop a four-year Monte Carlo simulation model using 500 trials to recommend the best decision whether the company should replace the old model with the new model Tip: Graph the simulated distribution of the NPV difference and compute the probability that the difference is negativelpositive