Nikon Ltd is considering whether to invest 6.1 Million in Year O to develop a novel (new to the market) product for which they expect Sales during Years 1 - 5. a) Investment Appraisal: examine the Net Present Value (NPV) for a new product investment at a 10% rate given that the firm expects annual Sales Revenues (in ) equal to five times 1,890,000 and a Profit Margin of 25%. b) Project Sensitivity Analysis: critically examine the sensitivity of the project to sales erosion (of 10%, 20% and 30%) using project NPV (for the same 10% discount rate). c) Project Return: using the original sales revenue, increase the discount rate till you achieve a negative NPV and use this to establish the project IRR (Internal Rate of Return). Discuss how this result may be viewed by senior staff responsible for project approvals (who consider risk levels when appraising an investment project)