a. For this base-case scenario, what is the NPV of the plant to manufacture lightweight trucks?

Please note all 4 subsections of this question (a-d)

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Bauer Industries is an automobila malaclurer. Mangerer is currently evaluating a proposal to build a plant that will manufacture lightweight trucks. Dauer plans to use a cost of capital of 11.9% to evaluate this pruject. Dased on extensive research, it has prepared the following incremental free wash fow projections in milions of collars). a. For this basc case scenana, what is the NPV of the plant to manufacture lightaight trucks? b. Brand an input from the marketing department, Bauer is uncertain ahas its ravenue forcest. In parcular, management would like to examine the sensitivity of the NPV to the revenue asumations. What is the NPV of this project it neverLS A 12hgher than forecast? What is the NFV If rawanues are 12% ower than forecaal? c. Rather than ansuring thalasi luar for this project are constant, margement would like to explore the remailivily of ils alysis lo posible growth in revenues and operating expenses. Specifically, management would like to assume that revenues, irracturing expenses, and markery expenses are as gven in the table for year 1 and grow by 3% per year every year starting in year 2. Management also plans to assume that the initial capital experiturus and therefore depreciation), additions to working capital, and continuation value remain as initially specfied in the table. What is the NPV of this project under these atematue ascumations? How does the NPV change the revenues and operating expenses groux by per year rather than by ?'87 d. TO EXAMINA tha sensitivity of this hasA-CASA ANArioj project to the discourt rate Management would like to compute the NPV for different discount es Create a graph, with the discount re on the s-axts and the NPV on ha idis, for discount rates ranging from 5% 30%. For what ranges of discount rate does the project have a positive NPV? a. For this has scenario, what is the NPV of the plant to manutachura light right ticka? The NPV of the estimated free cash flow is milion. (Round to two cecinal places.) = X Data table Cick on the folowing icon in order to copy its contents into a spreadsheet.) Year 0 1-9 Fevenue 11120 Manufacturing Expenses other than precision) -38.8 Marketing Expenses - 10.4 Depreciation - 153 EBIT 39 5 Taxes al 20% -7.60 Unlevered Net Income 31.60 Depreciation Adcitions to Nel Wording Capital -5.3 Capital Expenditures - 153.0 Continuation VR Free Cash Flow - - 158.0 41.600 10 11120 36.8 - 10.4 - 153 395 -7.80 31.60 +15.3 -53 + 12.3 53.000 Print Done