Question:

Try to simulate the profit after tax using Monte Carlo Simulation.

Monte Carlo Simulation

Assumptions:

Sales price Min 7.2 Uniform Max 8.1

Cost of Sales Mean 4.8 Normal

Std.deviation 0.75

Sales Volume Min 20,000 *Triangular

Moderate 40,000

Max 60,000

Tax exemption 0.8 0% Discrete

0.2 30%

Triangular Distribution Random Number

LowerRange = Moderate - Min

HigherRange = Max - Moderate

TotalRange = Max Min

CumulativeProb = Rand ()

If CumulativeProb < (LowerRange / TotalRange), Then RandomTriangular = Min + Sqrt(CumulativeProb * LowerRange * TotalRange)

Else RandomTriangular = Max - Sqrt((1-CumulativeProb) * HigherRnage * TotalRange)

End If