You are looking to determine the Risk of a new Project of buying a machine for $$45,000$ and use it for $6$ years.

There are $3$ input variables you are uncertain of: Sales Price per unit, Quantity of units sold and Cost of Sales

all presented below with different input distributions.

The NPV calculation is based upon the Most Likely forecast but upper management wants to determine how much risk

is involved in the project buy looking at Max NPV$,$ Min NPV$,$ Kurtosis, and Mean and Medium of NPV based upon

running $500$ iterations. Run an EXCELSIM Monte Carlo Simulation based on data below:

EXCELSIM will produce an output sheet you will need to include on your submitted exam.

Most Likely Distribution

Sales Price $$10\mathrm{.}00$ uniform low $8$ high $12$

Quantity $5,000$ triangular mode of $5,000,$ low $1,000,$ high $9,000$

Cost of Sales $0\mathrm{.}25$ normal with mean $\mathrm{.}25,$ std dev $\mathrm{.}075$

Overhead $$15,000$

Tax $25\%$

Cost of Unit $$45,000$

Discount $10\%$

$0123456$

Sales $$50,000$ $$50,000$ $$50,000$ $$50,000$ $$50,000$ $$50,000$

Cost of Sales $$12,500$ $$12,500$ $$12,500$ $$12,500$ $$12,500$ $$12,500$

Overhead $$15,000$ $$15,000$ $$15,000$ $$15,000$ $$15,000$ $$15,000$

NIBT $$22,500$ $$22,500$ $$22,500$ $$22,500$ $$22,500$ $$22,500$

Tax $$5,625$ $$5,625$ $$5,625$ $$5,625$ $$5,625$ $$5,625$

NI $(45,000)$ $$16,875$ $$16,875$ $$16,875$ $$16,875$ $$16,875$ $$16,875$

NPV $$28,495\mathrm{.}0$ show all work $in$ excel