Construct a model that calculates free cash flows for each relevant year.\ 2Note that the 15-year class depreciates the asset over 16 years.\ 3\ 2. Compute NPV, IRR, and modified IRR (WACC = 13%)\ 3. Use Scenario Manager under Data/What If Analysis to create the two plant alternatives.\ Label the scenarios NC plant and NM plant.3\ 4. For each scenario, compute the break-even % sales increase and break-even transportation\ cost % of finished furniture, i.e., the % sales increase and transportation cost % that result in\ $0 NPV. Construct a two way table for NPV to analyze the sensitivity of these two variables.\ 5. Construct a one-way sensitivity table to analyze the sensitivity of NPV to changes in %\ requirement of NOWC.\ 6. Prepare a table summarizing the two scenarios. Include the values of the free cash flow in\ each year and other relevant variables.\ 7. Make sure that every output of the model will automatically update when you change an\ assumption as you may be asked to alter some assumptions during the presentation to the\ management team of Hickory Furniture.\ Before you present in front the management team, you want to be able to answer the following\ questions:\ 1. Describe the basic pattern of free cash flows across time for the two choices for locating the\ plant. What important similarities exist in the pattern of free cash flows? What important\ differences exist? Why do these differences exist?\ 2. What is your recommendation for a plant location using NPV, IRR, and MIRR? Are IRR\ and MIRR acceptable methods for choosing between the 2 alternatives? If so, why? If not,\ why not?\ 3. hat are the break-even % increases in sales for both locations? How about the break-even\ transportation cost? What does the sensitivity analysis tell you? Explain your statements.