12.39 Rsk and NPY:Sensitivity Analysis LO 124, 12.5 Exercise 12-39 Risk and NPV: Sensitivity Analysis [LO 12-4, 12-5 l Morgan of SparkPlug Inc. has been approached to take over a production facility from B.R Machine Company The acquisiton willcost $1,810,000, and the after-tax net cash inflow will be $333,000 per year for 12 years SparsPlug currently uses 12% fo its after-tax cost of capital. Tom Morgan, production manager, is very much in favor of the investment He argues that the total after-tax net cash inflow the investment even if the demand for the product is somewhat uncertain. The project will pay for itself even if the demand is only haifthe projected level"Cindy Morgan (corporate controller) believes that the cost of capital should be 15% because t the declining demand for SpanAug products (Use Table 1 and Table 2) is more than the cost of Required: 1 Assume the project's after-tax cost of capital is 12%. Calculate the NFPV of this project should Morgan accept the project? (Negative amounts should be indicated by a minus sign. Round your answer to the nearest whole dollar amount 2. Calculate the NPV of this project, if Cindy Morgan is correct and uses 1 5% Should Morgan accept the project? (Negative amounts should nearest whole dollar amount.) 3(a) Use the buit-in function in Excel to estimate the project's IRR (Round your answer to 2 decimal places)