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
To modify the simulation for the new scenario we can add a loop that iterates from year 6 to year 10 ... View full answer
Get step-by-step solutions from verified subject matter experts
Document Format (1 attachment)
1497_60485b7404de5_838408.xlsx
300 KBs Excel File
