Monte Carlo Simulation Homework $$ We are evaluating a project that$$costs $$845,000,$ has an eight$-$year life, and has no salvage value. Assume that depreciation$$is straight$-$line to zero over the life of the project. Sales are projected at $51,000$units per year. Price per unit is $$53,$ variable cost per unit is $$27,$ and fixed costs are$$$$950,000$ per year. The tax rate is $22$ percent, and we require a return of $10$ percent$$on this project.$$Suppose the quantity follows a normal distribution $($mean$=51000,$ standard deviation$=3000).$ The variable cost per unit is projected to be between $$22$ and $$36.$ In Excel Format, Please make a pro forma income statement, calculate the operation cash flow $($OCF$=$EBIT$+$Depreciation$-$Tax$),$ and use the OCF to calculate the NPV$.$ Then run a Monte Carlo simulation $(500$ runs$)$ to see how likely the NPV will be positive. $($Hint: since no assumption about the growth, you can treat OCF as annuity and calculate the NPV in such way: NPV$=$PV of annuity$-$investment cost$).$