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a. For this base case scenario, what w the NPV of the plart to manufacture igh tweight trucks? NPV ol this project 2 forenues are

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a. For this base case scenario, what w the NPV of the plart to manufacture igh tweight trucks? NPV ol this project 2 forenues are 10 se the pee than forecast? What is the NPV if reverues are 10Kk lower than forecas?? assumquions? How does the NPV change 8 the revenues and oceritng expenses goo by 5% per year zather than by 2% ? d. To examine the sensitvify of this propet to the discoint rave. management would the to compute the NivV tor diferent diccount rates. Crease a graph, was fre discouserice on the x-avis and the NPV on ine y avi, for dincours rwes rangry from 5% to 30 th . For what tanges of decount rates does the peroect have a positie NPV? a. For this base case scenawio, whin is the NPV of the pant to mandactere ighterigh tracks? of tha poind if erienues \begin{tabular}{lrrr} Year & 0 & 19 & 10 \\ \hline Revenues & & 100.0 & 100.0 \\ Manufacturing Expenses (other than depreciation) & 35.0 & 35.0 \\ Marketing Expenses & 10.0 & 10.0 \\ Depreciation & 15.0 & 15.0 \\ EBIT & 40.0 & 40.0 \\ Taxes at 21\% & 8.4 & 8.4 \\ Unlevered Net Income & 31.6 & 31.6 \\ Depreciation & & +15.0 \\ Additions to Net Working Capital & 150.0 & 5.0 \\ Capital Expenditures & & 150.0 \\ Continuation Value & & & \\ Free Cash Flow & & 41.6 \end{tabular}

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