Windsor Metal Company (WMC), a small manufacturer of fabricated metal parts, must decide whether to enter the competition to become the supplier of transmission housings for Gulf Electric, a company that produces the housings in its own in-house manufacturing facility but has almost reached its maximum production capacity. Therefore, Gulf is looking for an outside supplier. To compete, WMC must design a new fixture for the production process and purchase a new forge. The available details for this purchase are on the following slide. Financial Facts: Known with Great Confidence Required investment = $100,000 Fixed cost = $15,000/Yr Project Life = 5 years Income tax rate = 40% MARR = 10% Unknown but Predictable (Most Likely Values) Q: Number of units = 1,900 units P: Unit Price = $48 per unit VC: Unit variable cost = $20 per unit S: Salvage value = $30,000 (a) Conduct a sensitivity analysis for each of the four key uncertain variables Q, P, VC and S in the range of -20% to 20% around the most likely value (the incremental is 2%). Present your result in both tables and scattered graphs. (40 marks) (b) Conduct a break-even analysis on Q. Use the goal-seeking function to find the break-even value of Q. (20marks) (c) The four unknown variables are normally distributed. The means and standard deviations are as follows: (40 marks) Q: mean = 1,900 units; 6=200 P: mean = $48 per unit; o=3 VC: mean = $20 per unit; o=4 S: mean = $30,000; O=5.000 Develop a simulation model on the project NPW with 300 iteration. Present your result in a table and histogram. Windsor Metal Company (WMC), a small manufacturer of fabricated metal parts, must decide whether to enter the competition to become the supplier of transmission housings for Gulf Electric, a company that produces the housings in its own in-house manufacturing facility but has almost reached its maximum production capacity. Therefore, Gulf is looking for an outside supplier. To compete, WMC must design a new fixture for the production process and purchase a new forge. The available details for this purchase are on the following slide. Financial Facts: Known with Great Confidence Required investment = $100,000 Fixed cost = $15,000/Yr Project Life = 5 years Income tax rate = 40% MARR = 10% Unknown but Predictable (Most Likely Values) Q: Number of units = 1,900 units P: Unit Price = $48 per unit VC: Unit variable cost = $20 per unit S: Salvage value = $30,000 (a) Conduct a sensitivity analysis for each of the four key uncertain variables Q, P, VC and S in the range of -20% to 20% around the most likely value (the incremental is 2%). Present your result in both tables and scattered graphs. (40 marks) (b) Conduct a break-even analysis on Q. Use the goal-seeking function to find the break-even value of Q. (20marks) (c) The four unknown variables are normally distributed. The means and standard deviations are as follows: (40 marks) Q: mean = 1,900 units; 6=200 P: mean = $48 per unit; o=3 VC: mean = $20 per unit; o=4 S: mean = $30,000; O=5.000 Develop a simulation model on the project NPW with 300 iteration. Present your result in a table and histogram