The owner of a small business is planning on expanding his business. The expansion will take an initial investment of S12,000 in cash from his existing business. The owner is interested in estimating the risk involved in the expansion. If there is more than a 10% risk ofhaving a negative net present value of the investment for the expansion, he might reconsider the expansion. The expansion will have revenues and expenses associated with it The following are the assumptions about the income and expenses (a) Quarter 1 Sales A normally distributed variable with a minimum of $110,000 and a maximum of S140,000 (b) Cost of Goods Sold Ratio: Rate Prob 70%-75% 75%-80% 80%-85% 30% 60% 10% (c) General and Administrative Expenses Salaries: S14,000 for Quarters 1 and 2 $15,500 for Quarters 3 and 4 The following are 96's of Gross Profit Commissions: 10% Utilities Telephone Avriable with a skewed left distribution with a minimum value of 3%, a most likely value of 6%, and a maximum value of 890