PLEASE SOLVE IN EXCEL SHOW PROCESS/FORMULAS

PLEASE SOLVE IN EXCEL SHOW PROCESS/FORMULAS

PLEASE SOLVE IN EXCEL SHOW PROCESS/FORMULAS

Q5 (20 pts): You have been hired as a consultant by an investor to determine whether he should invest in in a trendy product that has recently hit the market chapati maker (Indian roti/bread). Recent estimates of the financial data for the sales of this product show the following information:

Units Sold	Probability
2000	.20
5000	.50
8000	.30

Fixed cost for the production is Normally Distributed with a mean of $200,000 and a standard deviation of $20,000. Variable cost follows a uniform distribution between 45 and 55, and the selling price is $80.

a) Set up this simulation in Excel and calculate the net profit for each trial. Run 50 trials of the simulation. Find the average net profit for the 50 trials.

b) Given the uncertainty in the demand and the costs for this investment and the inherent risk in investing in this company, based on your analysis, is this a good investment, why or why not?