Baver industrios is an automoble manutacturer Managoment is currently ovaluating a proposal io buld a plant that wit manufacture lightaeight trucks, Bouer plans io use a cost of capital of 12 .0S, 10 Waluate this propect. Based ce extensive research, thas prepared the incromentad fren cash flow grogetions shown in the lollowing table (an mikions of doiars) a. For this base-case scenano, what is the NPV of the plant to macufacture ightweight trucss? What is the NPV of this projoct if rewonues are 10% higher than forecast? What is the NPV il revences are 10\% lower than forecast? c. Paather than assuming that cash flows for this projoct aro contant, managoment would tike to explore the sensithity of its analysis to gossible growe in revenues and coperating expenses specifially. managomert woudd the to aswume that revorues, manutacturng expenses. and makkoting expenses are as given in the table for yoat 1 and groar by 2 per year every rear starting in year 2 Maragenter atso plans to assurne that the intial captal expondtures (and therefore doprecioton), asditons to working captal, and consinusion value tomain as inbally specifiod in the table. What is the NPV at itis propect under these alternative assumpticns? How does the NPV change if the reveruos and operatirg oxpenses grow by 5% per year iather than by 2 ? ? the yawes, for droount rates ranging from 5%6 to 30%, For what rangos of dscount rates does the projed have a potitive NpV? 2. For this base-case scenario, what is the Nev of the plant to manudacture lightawigh trucks? The NPV of the plare to manutachure lightwight trucks, based on the estirnated fice cash fow is: malion (Round to one decima place.) The Nevar this propect if tevenues are 10 hhigher than forecant is! malion. (Round to one decimal place.) c. Rather than assuming that cash fows for this proiect are coestari, managemont would the to explore the sensitivity of its analysis to poseible growth in tevonues and operating expenses. Speoscaly management would libe to assume that revenues, manufacturing expenses, and mavketing exponsos are as given in the table for year 1 and grow by 2 to per ynar evory yeor atarting in yoar 2 . H reverwes, quanutacturing expenses, and marketing expenses grow by 2\% pot yout every your starting in yoar 2, the NPV of the estimatod free cash dow is 1 If revorwes, manitacturng ewenses, and marketing cuponsos grow by 5% per year every yeat starting in yoar 2 , the NpV at the estmolod freo cash flow is: d. To examine the senstivity of this proipct to the discount rate, management would lao to computo the NPV lor diflorent dicoount ratos using the base-case scenario Crowle a grach, with the dsocint Tho Npy is poseve for ditocunt ratbs bolow the IfR of \&. (Round to two docinal placos.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.)