Butte Strong Tool Factory is considering a project to supply Detroit with 20,000 tons of machine screws annually for automobile production. Butte Strong Tool Factory will need an initial $3,600,000 investment in threading equipment to get the project started; the project will last for four years. The accounting department estimates that annual fixed costs will be $850,000 and that variable costs should be $250 per ton; accounting will depreciate the initial fixed asset investment straight-line to zero over the four-year project life. It also estimates a salvage value of $250,000 after dismantling costs. The marketing department estimates that the automakers will approve the contract at a selling price of $380 per ton. The engineering department estimates Butte Strong Tool Factory will need an initial net working capital investment of $360,000. Consider, the units produced, sales price, variable costs, and fixed costs to be accurate within +/-890 of the projections. Also consider, that Butte Strong Tool Factory is offered a similar contract with a Detroit competitor that has a net present value of $139,000, but it comes with a non-compete clause that will not allow you to pursue the contract with Detroit. Butte Strong Tool Factory requires a return of 15 percent and face a marginal tax rate of 34 percent on this project. You and your team are the part of the corporate finance division and have been tasked by the Butte Strong Tool Factory's VP-Capital Projects, Cynthia Anniston, to evaluate this project. The VP would like to know the following What is the base case scenario NPV of the Detroit Contract? What is the IRR for the base-case scenario? What is the payback period for the Detroit Contract? What is the sensitivity of the project NPV to changes in the quantity supplied ANPVIAQ? what is the sensitivity of the project NPV to changes in the variable costs Pvavo? What is the sensitivity of the project NPV to changes in the fixed costs ANPV/AFC Which of these features are the most sensitive to changes with respect to NPV? Cynthia Anniston is a little unsure about Detroit's actual machine screw requirements. So, she also wants to know what minimum level of output does your team recommend that the company should not drop below under the base case scenario? Due to a change in the economic environment, and you and your team are not as confident in the original projections. So, you and your team decide to evaluate not only the base-case scenario, but also, the worst case, and best-case scenarios for the firm. What is the worst-case scenario NPV of the Detroit Contract? What is the best-case scenario NPV of the Detroit Contract? Further, you contact your Economic Forecasting Division and they provide you with the estimated probabilities of 25%, 50%, and 25% for the best-case, base-case, and worst-case scenarios, respectively. What is the expected NPV payoff of the Detroit Contract? Do you recommend that the firm pursues the contract or the competitor's contract? Why? Summarize your findings in a memo not to exceed one-page (11pt font Times New Roman). Complete analysis in excel and submit. Conduct sensitivity analysis, and scenario in separate worksheets. On the base case-scenario worksheet, you include the final estimates from the best and worst-case scenarios and the expected NPV payoff, and minimum production requirements