ABC company is considering a new investment whose data are shown below for which you need to estimate the cash flows The equipment asset would be depreciated on a straight-line basis over the project's 3-year life, would have a salvage value 1000 at the end of the 3 yrs project ABC company would require some additional working capital that would be recovered at the end of the project's life. Revenues and other operating costs are expected to be constant over the project's life. Clearly show your calculations and do not copy paste your values a) Estimate the Cash Flows and find the NPV and IRR of the project( 8 Marks) b) Find the sensitivity of NPV with respect to the WACC for +30% and -30% devaition from the base value of 10% (2 Marks) WACC Net investment in fixed assets Required new working capital Straight-line deprec. Rate (every year) Sales revenues( each year) Operating cost excluding depreciation, each year Salvage value of the equipment Tax Rate 10% 75000 15000 33.33% 75000 25000 1000 35%