G Co Industries is a manufacturer. Management is currently considering a proposal to spend $160 million building a plant that will manufacture lightweightvans. G Co plans to use a cost of capital of 11% to evaluate this project. (The investment of $160 million would be made in year zero). G Co business analysis department has prepared the EBIT projections shown below (in millions of dollars) Year 1 Year 0 Year 2 Year3 Year 4 Year S Year 6 Year7 Year Year 9 Year 10 Revenue 105 105 105 105 Marketing expenses 16 16 16 16 16 16 16 iation EBIT G Co's tax rate is 35%. If it goes ahead with the project, the company expects its net working capital to increase by $5 million dollars each year (starting in year1). It estimates that the continuation value- the presentvalue, in year10, of all the future free cash flows from year 11 onwards-to be $12 million. a. Calculate the free cash flows for years 1-10 (include continuation value as a part of free cash flow in year 10) b. For this base-case scenario, what is the NPV of the plant to manufacture lightweight vans? c. To examine the sensitivity of this project to the discount rate, calculate the NPV for discount rates of 15%, 20% and 25% (Assume that Continuation Value as of year 10 stays at $12 million for all three scenariOs) d. What do the results in parts (b) and (c) tell you about the value of the project's IRR