1. The Alhaj Autos Group Ltd is contemplating to increase their auto production capacity by investing in newest robotic production unit. This facility extension is expected to bring an incremental cashflows for the company. The management of the group is expecting that funds could be raised at the cost between 11% to 12.5% to support this extension plan. The management has received the tender from Pak-Engineering to establish this robotic facility at the cost of Rs. 100 million with payments to be made in following schedule.

Date	Payment	Remarks
1st June 2022	Rs. 25 million	The contract is finalized and Pak-Engineering will initiate development and construction of facility
1st September 2022	Rs. 60 million	The first phase of facility is completed and payment for 2nd final phase is to be extended to Pak-Engineering
31st December 2022	Rs 15 million	The final payment is made on completion of project by the engineering firm and the newly established is handed over to the Alhaj Autos Group Ltd. ready for production

After the establishment of the facility the group management expect that the facility will be able to generate cashflow in quarterly operating cycles. The first quarter operating cycle will be completed as of 31st March 2023, once started in January 2023, with cash inflow of Rs 4.50 million. This is expected to grow @ 5% quarterly for 5 years. The last date (with final cash inflow) of this investment project is therefore set to be 31st December 2027.

Requirement:

1. Compute the NPV and IRR for the project using the appropriate MS Excel function.

2. Perform the sensitivity analysis for NPV by changing the discount rate (use range from 8% to 14%)

3. perform the sensitivity analysis for NPV by changing the quarterly growth rate of cash flow (use range from 2% to 6%)