Buhler industries is a farm implement manufacturer. Management is currently evaluating a proposal to build a plant that will manufacture, lightweight tractors. Buhler plans to use a cost of capital of 12% to evaluate this project. Based on extensive research, it has been prepared the following incomplete incremental free cash flow projects in millions of dollars:

The relevant CCA rate for the capital expenditures is 20%. Assume assets are never sold.

a. for the space case scenario, what is the NPV of the plant to manufacture lightweight tractors?

b. based on input from the marketing department, Buhler is uncertain about its revenue forecast. In particular management would like to examine the sensitivity of the NPV to the revenue assumptions. What is the NPV of this project if revenues are 10% higher than forecast? What is the NPV if this project of revenue or 10% lower than the forecast?

The relevant CCA rate for the capital expenditures is 20%. Assume assets are never sold