Oakmont Company has an opportunity to manufacture and sell a new product for a four-year period. After careful study, Oakmont estimated the following costs and revenues for the new product: When the project concludes in four years the working capital will be released for investment elsewhere within the company. Required: Using Excel (this will save you time and effort) answer the following: (a) Oakmont's cost of capital is 15%, and management does not feel it should have any adjustment for risk, compute the NPV. (b) Same situation as (a), but management does feel this project does possess a greater than average risk, so 19% should be the required rate of return. Compute the NPV. (c) Management thinks that, while all of the assumptions about cash flows are the same, but rather than a four-year life, the product will have a six-year life (the salvage of the equipment will also remain the same at end of 6 years as what was estimated for 4 years); there is another overhaul needed at the end of year 2 and 4 as well). Using a 19% required rate of return, compute the NPV. (d) Management thinks that if they can spend another $10,000 on advertising each of the next 4 years (at the end of the year, note this will be 10,000 additional year over year, so if they spend an extra $10,000 at the end of year 1, then they will spend an extra $20,000 at the end of year 2 , etc.). it will cause sales volume to increase by 10% for each of the next 4 years (the 10% will increase for each year over year, starting at the end of year 2 if spend the $ at the end of year 1 for advertising, would not see the effect until year 2). (Assume all cash flows occur at the end of the year) Compute NPV using a 19% cost of capital