Question
Using Crystal Ball extension, or any Excel formulas, develop a 3-year financial analysis for the following data given: Sales volumes in the first year is
Using Crystal Ball extension, or any Excel formulas, develop a 3-year financial analysis for the following data given:
Sales volumes in the first year is estimated to be 100,000 Units and is projected to grow at a rate that is normally distributed with a mean of 7% per year and a standard deviation of 4%.
The selling price is $10 (initial-year 0), and the price increase is normally distributed with a mean of $0.5 and standard deviation of $0.05 each year.
Per unit variable costs are $3 (initial-year 0), and annual fixed costs are $200,000(initial-year 0).
Per-unit costs are expected to increase by an amount normally distributed with a mean of 5% per year and standard deviation of 2%.
Fixed costs are expected to increase following a normal distribution with a mean of 10% per year and standard deviation of 3%.
What's the average 3-year profit based off this info?
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