Part A: The Long-Life Company has a new vaccine. The company estimates that it has a 10 -year monopoly on the production of the vaccine, and it is trying to estimate how many vaccines it should try to sell annually. Machines to produce the new vaccine cost $70 million, have a 5 -year life, and zero salvage value. The machines are depreciated using the 7-year MACRS depreciation schedule. Each machine is capable of producing 75,000 vaccines annually. Annual fixed costs for producing the vaccine are $35 million, and the variable cost per vaccine is $1,000. Long-life plans to sell the vaccine at a price of $1,500 per vaccine. The company's discount rate for this type of vaccine is 15%, and its corporate tax rate is 30%. Use the model template and MACRS data in "HW Ch4_Template_FIN360" to answer the questions below. Along with your completed model, submit a write-up-that answers parts 4-6. 1. Write a formula in cell B15 to calculate the number of.machines Long-Life will need to purchase to meet expected demand. Hint: The ROUNDUP formula may be helpful. 2. If Long-Life expects to sell 250,000 vaccines each year, what are the NPV and IRR of the product. over its 10 -year life? 3. Create a two-way data table to analyze the sensitivity of NPV to the number of vaccines sold annually and the discount rate. Assume the discount rate ranges between 10% and 25%, by increments of 3%, and annual sales takes on one of the following values: 100300K in increments of 40K 4. Using the results from part 3, make an argument for the optimal number of vaccines to produce. 5. Set annual vaccines sold to a value of 200,000 and use GOAL. SEEK to calculate the number of breakeven units, i.e., number of units sold that makes the NPV =0. 6. Repeat part (e), but first set annual vaccines sold to a value of 100,000 . Explain your results. \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|} \hlineA & & cc & D & Ei & F & & H & 1 & 1 & & 0. \\ \hline & & & & & & & & & & & \\ \hline \begin{tabular}{l} Pacount rate \\ Tartile \end{tabular} & & & & & & & & & & & \\ \hline & \begin{tabular}{r} 70.000 .000 \\ 14.000 .000 \\ 75.000 \end{tabular} & & & & & & & & & & \\ \hline & & : & Expests to set & 250,000 & & & & & : & & \\ \hline & 3 & & & & & & & & & & \\ \hline CASH FLOWS & & & & & & & & & & & \\ \hline \begin{tabular}{l} Year \\ Reve \end{tabular} & 0 & 0,300,000,000 & 2000000000 & 3000000000 & & \begin{tabular}{l} 5 \\ 300000000 \end{tabular} & 5000000,000 & 500000000 & 00060,000 & 2000000000 & 1000,000000 \\ \hline & : & 35000000 & 35,000000 & 15,000000 & 38000000 & 35,000000 & 15000000 & 25000000 & $5000500 & -15000000 & 35000000 \\ \hline & & 14000000 & 14,005000 & 4,000000 & 14000,000 & 16,000,000 & & & & & \\ \hline & 6 & & & & & & & & & & \\ \hline \begin{tabular}{l} WFa \\ CFen \end{tabular} & 0 & & & & & & & & & & \\ \hline & & & & & & & & & & & \\ \hline \end{tabular}