Himalaya Products inc. $($Himaldya$)$ is considening the virodustion of a new froduct, Gamma. The firm has gathered the following informatikn relevant to the progect.

Infial fixed captal outtiy: $$100,000$

Inhal workina capital cullay $$10000$

Lre of the project $5$ years

Capital recovery at project end fuced $$18,000$; workng $$7,000$

Saies unils forecast s$0,000$ units in yoar $1$ gosing at ex per arnum thereafter

Unil seling price $$275$

Unit production cost $$128$

Annual fixed overhead cost: $$35000$

Annual tax rate of deprecation clamable: $20\%$ per annum

Annual income tax rale. $35\%$

Required ide of reburn S$9$s per amum

Due so the launching of the new product, the net income after tax of Betal $($L$.$e$.$ Himaligy's od prodict$)$ is expecied to reduced by $$200$ per annum starting at the end $d$ year $1$ ot the project, and up to the end of year $5$ Protuct Gamma was infiated following a research pondirked $2($two$)$ years ago by an extemal maket research consultant, where the compery paid $$50,000$ for the research

For these diata

$($a$)$ Prepore a schedule showng the relerami cash flows for the projecs and caculate an P$.$PV for the project under the guen bast$-$case scenaro unit seling price, arnual sales gome rate, unt production cost.

$($c$)$ Which variables are senstrue variables? Whr$?$

$($d$)$ Advise managemenk of the analyses regarding the hew product Gamma, and make aspopiale investmenk recommendatons.

Addtonalinformation

$\backslash$table$[[$Variables$,$Pessimistic,Optimistic$],[$intoal foxed capisal pulay,$$115,000,315,000],[$Lind seling price,$$220,5285],[$annual sades growh raxs,$45,],[$unie productionsost,$$1\mathrm{.}66$ intint,$51\mathrm{.}02]]$

Please state your assamption $($if necessayy$)$