Develop a simulation model for a 3-year financial analysis to total profit based on the following data and information. Sales volume in the first year is estimated to be 100,000 units and is projected to grow at a rate that is uncertain. The min is 3%, the most likely is 7%, the max is 11%. The selling price is $10 and the price increase is also uncertain with a min of $0.45, most likely of $0.50 and max of $0.60. Per unit variable costs are $3, and annual fixed costs are $200,000. Per-unit costs are expected to increase by a most likely amount of 5% with a min of 3% and max of 8%. Fixed costs are expected to increase with a most likely value of 10%, min of 9%, max of 11%. Determine the net profit by year. Use a discount rate of 5

% to determine the NPV of profit for all three years. . Use a discount rate of 5%.

a) Create a well functioning what if spreadsheet first. When you create a what if spreadsheet - use the MOST LIKELY values for the uncertain variables.

Check: Using most likely values the 3-year Profit NPV is $1,541,723.

Once you get the above check figure, use the simulation with 1000 iterations to answer the following:

b) What is the probability that Profit NPV will be greater than $1.58 million?

c) What is the probablity that profit NPV will be less than $1.5 million?

d) What is the middle 90% range for Profit NPV for 3 years?