... standard deviation of 3. In Model 2, the cash flow forYear 5 is linked to all previous years’ cash flows:C5= C4+3Z5= C 3 +3Z4+3Z5= C2+3Z 3 +3Z4+3Z5= C1+3Z2+3Z 3 +3Z4+3Z5= ... Ct= 30 +3Ztfor t = 1, 2, 3, 4, and 5, where each Ztis drawn from a116 FINANCIAL MODELING WITH CRYSTAL BALL AND EXCEL FIGURE 7.11 Spider chart.analysis of the relationships between the randomly ... C 3 +3Z4+3Z5= C2+3Z 3 +3Z4+3Z5= C1+3Z2+3Z 3 +3Z4+3Z5= 30 +3Z1+3Z2+3Z 3 +3Z4+3Z5,so has a true variance of 5 (3 2) = 45 and standard deviation 6.708. The increasingdispersion of cash...