Question: Below is a spreadsheet for Trance Electronics. A B C D E F 1 Market size 1 , 0 0 0 , 0 0 0
Below is a spreadsheet for Trance Electronics.
A B C D E F
Market size
Unit monthly Rx revenue $
Unit monthly Rx cost $
Discount rate
Project costs
R&D $
Clinical Trials $
Model
Year
Market growth factor
Market size
Market share growth rate
Market share
Suppose that the project manager of Trance Electronics has identified the following uncertain variables in the model:
Market size: normal with mean of units and standard deviation of units.
R&D costs: uniform between $ and $
Clinical trial costs: normal with mean of $ and standard deviation $
Annual market share growth rate: triangular with minimum maximum and most likely
Run the simulation for trials and answer the following questions.
What cumulative profit in the fourth year is likely to be realized with a probability of Choose the nearest answer.
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