Find the NPV and the IRR of the project using the pro forma financial statement method to determine cash flows.

Set up the necessary equations by referencing the input variable cells. The spreadsheet must be formula-driven; do not put any numbers in cell equations, only cell references. Keep the spreadsheet clean (e.g. no color).

Conduct an NPV sensitivity analysis to +/- 1% changes to

i) the sale volume, ii) the price per unit, iii) the variable cost per unit, iv) the fixed costs, and v) the hurdle rate to populate a table structured as follows:

NPV Capital with -1% of forecasted value	Forecast Value	NPV capital with +1% of forecasted value
852,499.68	Sale volume= 12,000	2,27,9321.49
-1,408,102.77	Price per unit= 10,130	4539923.95
3,826,513.04	Variable cost/unit+ 7,700	-694691.87
1,859,495.32	Fixed Cost= 12,000,000	1272325.85
1,902,470.30	Hurdle rate= 18%	1232698.56

Write a report (to be submitted, up to one page of text maximum) summarizing your analytical findings (NPV and sensitivity analysis) and your recommendation (recommend to proceed or decline the project, and why).