Big B Coffee Shop2 - Big B Coffee Shop (3) Provided...

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Big B Coffee Shop (3) Provided Workbook: CB123 Relevant Readings:"Discounted Cash Flow Modeling" folder + Textbook Chapter 7. Individual assignment (Identify yourself in the "ID" worksheet). Consider Big B Coffee Shop from the previous homework (see provided Workbook). Big B now realizes that some of the assumptions made are not totally correct. For example, even though projected decrease in operating expenses is $3,912, past experience from other users indicates that operating expenses can vary significantly from year to year. Big B's CFO has come to the conclusion that decrease in operating expenses will most likely follow a normal distribution with a mean of $2,912 and a standard deviation of $750. Also, increase in revenues will depend on the overall state of the economy. Analysts believe that the increase in sales is not going to be less than $11,070 but if the economy is doing well, the increase in sales could be much higher. Big B's CFO decided to use a uniform distribution with a minimum of $5,535 and a
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Big B Coffee Shop2 - Big B Coffee Shop (3) Provided...

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