Question: Show the process by which a computer would perform a simulation analysis for this project. Assume the computer has generated the random numbers used in
Show the process by which a computer would perform a simulation analysis for this project. Assume the computer has generated the random numbers used in parts and
Use the random numbers and to determine the project's life and development costs; these will be the same for all sample years.
Use and as random numbers to determine the unit sales, sales price per unit, and cost per unit in the first year, respectively. Calculate the net income. Repeat this for Year by using the random values and to determine the unit sales, sales price per unit, and cost per unit in the second year. Repeat this for Year and any subsequent years by using the random values and to determine the unit sales, sales price per unit, and cost per unit in the third year, respectively.
What is the NPV for this sample? Do not round intermediate calculations. Round your answer to the nearest dollar. Use a minus sign to enter a negative value, if any.
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