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    Second Year Scenario

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    ravi
    The document contains revenue and cost data for a company across three years. It calculates the expected present profit for each year and scenario by multiplying the profit by the probability of each level of demand occurring. It then sums the expected present profits for each year to calculate the overall expected present profit of 5471.07438.

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    Second Year Scenario

    Uploaded by

    ravi
    12 views2 pages
    The document contains revenue and cost data for a company across three years. It calculates the expected present profit for each year and scenario by multiplying the profit by the probability of each level of demand occurring. It then sums the expected present profits for each year to calculate the overall expected present profit of 5471.07438.

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    The document contains revenue and cost data for a company across three years. It calculates the expected present profit for each year and scenario by multiplying the profit by the probability of each level of demand occurring. It then sums the expected present profits for each year to calculate the overall expected present profit of 5471.07438.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    12 views2 pages

    Second Year Scenario

    Uploaded by

    ravi
    The document contains revenue and cost data for a company across three years. It calculates the expected present profit for each year and scenario by multiplying the profit by the probability of each level of demand occurring. It then sums the expected present profits for each year to calculate the overall expected present profit of 5471.07438.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 2

    Revenue

    per unit 1.22

    No.of
    Revenue No.of occurance
    Demand Cost
    (D) Price (P) (R)=Dx1.2 (C)=DxP Profit=R-C occurance s/total
    2 s occurance
    s

    144000 1.45 175680 208800 -33120 1 0.0625


    Second 144000 1.19 175680 171360 4320 2 0.125
    Year 144000 0.97 175680 139680 36000 1 0.0625
    Scenario 96000 1.45 117120 139200 -22080 2 0.125
    96000 1.19 117120 114240 2880 4 0.25
    96000 0.97 117120 93120 24000 2 0.125
    64000 1.45 78080 92800 -14720 1 0.0625
    64000 1.19 78080 76160 1920 2 0.125
    64000 0.97 78080 62080 16000 1 0.0625
    1
    Expected present profit

    Revenue Cost Profit Prob


    146400 158400 -12000 0.25
    First Year 146400 129600 16800 0.25
    Scenario 97600 105600 -8000 0.25
    97600 86400 11200 0.25

    Expected present profit


    Present
    Year 100000 122000 120000 2000
    Scenario

    Present
    profit
    from all 3
    years
    Profit with
    probability

    -2070
    540
    2250
    -2760
    720
    3000
    -920
    240
    1000
    2000
    1652.892562

    Profit with
    probability
    -3000
    4200
    -2000
    2800
    2000
    1818.181818

    5471.07438

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