Question: Change the new car simulation from Example 11.4 as follows. It is the same as before for years 1 through 5, including depreciation through year

Change the new car simulation from Example 11.4 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.

Step by Step Solution

3.38 Rating (160 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

To modify the simulation for the new scenario we can add a loop that iterates from year 6 to year 10 ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Excel file Icon

1497_60485b7404de5_838408.xlsx

300 KBs Excel File

Students Have Also Explored These Related Practical Management Science Questions!