Please please help. please use excel and show formulas when applicable. Thank you!!

You are evaluating a project that will require $12,000 initial investment and will last for 5 years. You will use a straight-line depreciation and expect zero salvage value. The discount rate is 10.5%. The Year 1 revenue is expected to be $10,800 (), but could be distributed within a normal distribution with a standard deviation () of $850. In Years 2 to 5, revenue is expected togrow from the previous year with of 7% and of 2%. Variable costs are proportional torevenue with of 50% and of 4%. Fixed costs are $2,600 per year. Furthermore, the tax environment is uncertain with of 28% and of 2.5%. Assume there is no other cash flowsinvolved with this project. (Highlight relevant numbers in your spreadsheet so that I can readily identify them.)

• Estimate cash flows for this project. Make sure to incorporate all mentioned uncertainties. Assume normal distribution for all uncertainties.
• Compute the NPV.

• Run a simulation to compute NPV for 300 times. Compute the and of the 300 NPVs.

• What is the probability that the NPV will be positive?

• Plot a histogram to show the simulation result.

• What are the limitations of Monte Carlo simulation?

• Should you accept the project?