Suppose a manager has already estimated a projects cash flows, calculated its NPV, and done a sensitivity analysis like the one shown in Table. List

Suppose a manager has already estimated a project’s cash flows, calculated its NPV, and done a sensitivity analysis like the one shown in Table. List the additional steps required to carry out a Monte Carlo simulation of project cashflows.

Range NPV, Y billions Variable Pessimistic Expected OpiiticPessimistic Expected Optimistic Market size, million Market share Unit price,yen Unit variable cost, yen Fixed cost, billions 0.9 0.04 1.1 0.16 1.1 10.4 4.2 15.0 0.4 3.4 5.7 17.3 5.0 11.1 6.5 0.10 3.4 350,000 375,000 360,000 380,000 275,000 2 3.4 3.4 3.4 300,000