F G H Company X projects numbers of unitates for a new project as follows: 81000 [year 1), 89000 year 21,97000 [year 3), 92000 (year 4 and 77000 years The project will require $1,500,000 in networking capital to start and require additional networking capital investments each year equal to 15% of the projected sales for subsequent years ( meaning that the second year requires $1,500,000 15 of projected sale for the second year). NWC is recovered at the end of the fifth year Totalfred costs are $1,850,000 per year Variable costs are $190/unit, and the units are priced at $345 each. The equipment needed to begin production has a cost of $19,500,000 The equipment is qualified for accounting as seven-year MACRS depreciation Year 1: 14.29%, Year 2: 24.49%, Year 3: 17.49%, Year 4:12.49% Year 5: 8.93% In 5 years, this equipment can be sold for BSX of its acquisition cost original cost) The company is in the 35% marginal tax bracket and has a required rate of return of 18%. (a) Summarize and estimate cash flows (b) Calculate NPV, IRR c) Create a NPV profile corresponding to discount rates between (6,8%, ... 40%) (4) Do a sensitivity analysis using 2-input data table analyzing NPV given Selling price (5300, $320...5400), and VC($160, 5170, 5210) (d) Do a scenario analysis (Best case and worst case) and report the summary results for NPV and IRR: Optimistic: Variable cost $160/unit, Fixed cost $1,600,000, selling price $400/unit Pessimistic: Variable cost $210/unit, Fixed cost $2,050,000, selling prices $300/unit