A student in the Entrepreneurship program is looking for investors for his start-up company called Time4Treats. Time4Treats is a camer and contraption that tosses treats to your pet using an app on your phone. You must decide whether or not you believe this will be a good investment. Recent sales predictions for Time4Treats is as follows: Units Sold Probability 2500 .25 5000 .55 9000 .20 Fixed costs for the production is Normally Distributed with a mean of $225,000 and a standard deviation of $35,000. Variable cost is $29 per unit and the selling price is $79. 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 f the 50 trials. b) Given the uncertainty in the demand and the fixed costs for this investment and the inherent risk in investing in this company, based o your analysis, is this a good investment, why or why not? HINT: For each trial, you will need to simulate two random numbers -- one for units sold and one for fixed costs. You can either use th RAND() function or the Random Number Generators. Type your response to part (b) on your Excel sheet. Upload the completed Excel file here.
A student in the Entrepreneurship program is looking for investors for his start-up company called Time4Treats. Time4Treats is a camer and contraption that tosses treats to your pet using an app on your phone. You must decide whether or not you believe this will be a good investment. Recent sales predictions for Time4Treats is as follows: Units Sold Probability 2500 .25 5000 .55 9000 .20 Fixed costs for the production is Normally Distributed with a mean of $225,000 and a standard deviation of $35,000. Variable cost is $29 per unit and the selling price is $79. 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 f the 50 trials. b) Given the uncertainty in the demand and the fixed costs for this investment and the inherent risk in investing in this company, based o your analysis, is this a good investment, why or why not? HINT: For each trial, you will need to simulate two random numbers -- one for units sold and one for fixed costs. You can either use th RAND() function or the Random Number Generators. Type your response to part (b) on your Excel sheet. Upload the completed Excel file here.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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can you please answer this in an excel file.
Transcribed Image Text:A student in the Entrepreneurship program is looking for investors for his start-up company called Time4Treats. Time4Treats is a camera
and contraption that tosses treats to your pet using an app on your phone. You must decide whether or not you believe this will be a good
investment. Recent sales predictions for Time4Treats is as follows:
Units Sold
Probability
2500
.25
5000
.55
9000
.20
Fixed costs for the production is Normally Distributed with a mean of $225,000 and a standard deviation of $35,000.
Variable cost is $29 per unit and the selling price is $79.
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 fixed 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?
HINT: For each trial, you will need to simulate two random numbers -- one for units sold and one for fixed costs. You can either use the
RAND() function or the Random Number Generators. Type your response to part (b) on your Excel sheet. Upload the completed Excel
file here.
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