Bauer Industries is an automale manufacturer. Maragamant la durant ewaluating Ampasal to build a part that will manufach.ra lightweight trucks. Bewer plans to LR a cost of capital of 11.9%, 10 Avaluate this act. Based on ANS VA TAFRAICH, It has prepared the incremental free ashow protections shown below lin millions of dollars: A. For this hasASA ACANARIO, what is the NPV of the plant to manufacture lightweight trucks? 1. Based on input from the marketing centment, Bauer is uncertain about its revenue forecast. In particular, management woud like to examine the sensitivity of the NPV to the revenue assumptions What is the NPV of this project if revenues pre 125 higher than freast? What is the NPV if rewers are 12% lower than freast? G. Rather than assuming that cash flow for this project are wors.ant, irruageren. would like to explore the senzitivity of ils analysis to possible growth in revenues and operating expenses. Specifically management would like to assume that revenues, manufacturing expenses and rarketing expenses are as given in the table for year 1 and grow by 3% per year every year starting in year 2. Wanagement also plans to assume that the initial capital experdures and therefore depreciation), additions to workrg captal, and continuation value remain as initially specified in the table. What is the NPV of this proiect under these atemative assumptions? How does the NPV change it the revenue and operating expenses grow by per year rather than by ?? a to examine the sensity of this project to the discount rate, management would Ike to compute the NPV for different discount rates. Create a graph, with the discount rate on the x-rxk and the NPV an the years, for decount rates ranging from 5% to 30%. For what range of countries does the project have a paliva NPV? 3. For this base-eescenario what is the NPV of the plant to marufacture ligninsight The NPV of the plant to manufacture lightweight trucks, based on the estimated free cas i Dete Teile Click on the following icon in order to copy its contents into a upresusheet.) Year Revenues Manufacturing Expenses (ather than enclation) Markeling Expenses Depreciation EBIT Taxes al 21% Unlevered Net Income Depreciation Acditions to Net Working Cauta Capi.al Expenditures Continuatian Vale Free Cash Flow 1-9 102.2 - 37.5 -8.5 - 15.2 41.0 - 9.6 32.4 + 15.2 -5.2 10 102.2 - 36.5 -9.5 15.2 41.0 - 15.2 -52 - 152.3 + 12.5 66.0 - 162.3 Print Dane Bauer Industries is an automale manufacturer. Maragamant la durant ewaluating Ampasal to build a part that will manufach.ra lightweight trucks. Bewer plans to LR a cost of capital of 11.9%, 10 Avaluate this act. Based on ANS VA TAFRAICH, It has prepared the incremental free ashow protections shown below lin millions of dollars: A. For this hasASA ACANARIO, what is the NPV of the plant to manufacture lightweight trucks? 1. Based on input from the marketing centment, Bauer is uncertain about its revenue forecast. In particular, management woud like to examine the sensitivity of the NPV to the revenue assumptions What is the NPV of this project if revenues pre 125 higher than freast? What is the NPV if rewers are 12% lower than freast? G. Rather than assuming that cash flow for this project are wors.ant, irruageren. would like to explore the senzitivity of ils analysis to possible growth in revenues and operating expenses. Specifically management would like to assume that revenues, manufacturing expenses and rarketing expenses are as given in the table for year 1 and grow by 3% per year every year starting in year 2. Wanagement also plans to assume that the initial capital experdures and therefore depreciation), additions to workrg captal, and continuation value remain as initially specified in the table. What is the NPV of this proiect under these atemative assumptions? How does the NPV change it the revenue and operating expenses grow by per year rather than by ?? a to examine the sensity of this project to the discount rate, management would Ike to compute the NPV for different discount rates. Create a graph, with the discount rate on the x-rxk and the NPV an the years, for decount rates ranging from 5% to 30%. For what range of countries does the project have a paliva NPV? 3. For this base-eescenario what is the NPV of the plant to marufacture ligninsight The NPV of the plant to manufacture lightweight trucks, based on the estimated free cas i Dete Teile Click on the following icon in order to copy its contents into a upresusheet.) Year Revenues Manufacturing Expenses (ather than enclation) Markeling Expenses Depreciation EBIT Taxes al 21% Unlevered Net Income Depreciation Acditions to Net Working Cauta Capi.al Expenditures Continuatian Vale Free Cash Flow 1-9 102.2 - 37.5 -8.5 - 15.2 41.0 - 9.6 32.4 + 15.2 -5.2 10 102.2 - 36.5 -9.5 15.2 41.0 - 15.2 -52 - 152.3 + 12.5 66.0 - 162.3 Print Dane