Bauer Industries is an automobile manufacturer: Management is currently evaluating a proposal to build a plart that will manufacture lightweight frucks, Eaver plans to tise a cost of caphtal of 12.3% to evaluate this prolect Eased on entenstve resegrch, it has prepared the incremental free cast flow projections shomt in the followino table (in milions of collars) a. For this baso-case scenario, what is the NPV of the plant to manutacture lightweight frucks? b. Based on input from the marketing department, Buuer is uncertain about is revenue forecast in particular, management would like to examne the sensitivity of the NPV to the revenue assumptions. What is the NPV of this project if revenues are to\%, higher tran forecast? What is the NPV if revenues are 10S iower than forecas? c. Rather than assuming that cash fows for this project are constant, maragement would like to explore the sensituty of its analysit to possible growth in revenues and operating expenses. Specifically, managernent wou d like to assurne that revenues, manufacturing expenses, and marketing expenses ace at given in the table for additions to working capital, and continuation value remain as initilly specified in tho table. What is the NPV of this projoct under these alternafive assumptions? How does the NPV chunge if the revenues and operating expenses grow by 5% per year rather than by 3 we? d. To exumine the rensitivity of this projoct to the discount rate, management would the to compute the NPv for different discount rates. Create a gaph, with the discount fate on the x-axis and the NPV on the y axis, for discount rates ranging from 5% to 30%. For what ranges of discount rates doces the project have a postive NPV? (Click on the following icon in order to copy its contents into a spreadsheet.)