Question

Change the new car simulation from Example 16.4 as follows. It is the same as before for years 1 through 5, including depreciation through year 5. However, the car might sell through year 10. Each year after year 5, the company examines sales. If fewer than 45,000 cars were sold that year, there is a 50% chance the car won’t be sold after that year. Modify the model and run the simulation. Keep track of two outputs: NPV (through year 10) and the number of years of sales.



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  • CreatedApril 01, 2015
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