please help me with the two questions. Thanks so much

Year Revenues Manufacturing Expenses (other than depreciation) Marketing Expenses Depreciation EBIT Taxes at 35% Unlevered Net Income Depreciation Additions to Net Working Capital Capital Expenditures Continuation Value Free Cash Flow Bauer Industries is an automobile manufacturer. Management is currently evaluating a proposal to build a plant that will manufacture lightweight trucks. Bauer plans to use a cost of capital of 11.8% to evaluate this project. Based on extensive research, it has prepared the incremental free cash flow projections shown below (in millions of dollars): a. For this base-case scenario, what is the NPV of the plant to manufacture lightweight trucks? b. Based on input from the marketing department, Bauer is uncertain about its revenue forecast. In particular, management would like to examine the sensitivity of the NPV to the revenue assumptions. What is the NPV of this project if revenues are 8% higher than forecast? what is the NPV if revenues are 8% lower than forecast? 0 1-9 99.1 -36.1 -9.1 -15.4 38.5 -13.5 25 15.4 -5.5 10 99.1 -36.1 -9.1 -15.4 38.5 -13.5 25 15.4 -5.5 34.9 11.6 46.5 -154.4 -154.4 c. Rather than assuming that cash flows for this project are constant, management would like to explore the sensitivity of its analysis to possible growth in revenues and operating expenses. Specifically, management would like to assume that revenues, manufacturing expenses, and marketing expenses are as given in the table for year 1 and grow by 3% per year every year starting in year 2. Management also plans to assume that the initial capital expenditures (and therefore depreciation), additions to working capital, and continuation value remain as initially specified in the table. What is the NPV of this project under these alternative assumptions? How does the NPV change if the revenues and operating expenses grow by 5% per year rather than by 3% d. To examine the sensitivity of this project to the discount rate, management would like to compute the NPV for different discount rates. Create a graph, with the discount rate on the x-axis and the NPV on the y-axis, for discount rates ranging from 5%-30% For what ranges of discount rates does the project have a positive NPV? Bauer Industries is an automobile manufacturer. Management is currently evaluating a proposal to build a plant that will manufacture lightweight trucks. Bauer plans to use a cost of capital of 11.7% to evaluate this project. Based on extensive research, it has prepared the incremental free cash flow projections shown below (in millions of dollars): Year Revenues Manufacturing Expenses (other than depreciation) Marketing Expenses Depreciation EBIT Taxes at 35% Unlevered Net Income Depreciation Additions to Net Working Capital Capital Expenditures Continuation Value Free Cash Flow 0 1-9 104.5 -34.3 -9.2 -14.9 46.1 -16.1 30 14.9 -4.1 10 104.5 -34.3 -9.2 -14.9 46.1 -16.1 30 14.9 -4.1 40.8 11.4 52.2 -149.3 -149.3 A For this base-case scenario, what is the NPV of the plant to manufacture lightweight trucks? B Based on input from the marketing department, Bauer is uncertain about its revenue forecast. In particular, management would like to examine the sensitivity of the NPV to the revenue assumptions. What is the NPV of this project if revenues are 12 % higher than forecast? What is the NPV if revenues are 12 % lower than forecast? C. Rather than assuming that cash flows for this project are constant, management would like to explore the sensitivity of its analysis to possible growth in revenues and operating expenses. Specifically, management would like to assume that revenues, manufacturing expenses, and marketing expenses are as given in the table for year 1 and grow by 3% per year every year starting in year 2. Management also plans to assume that the initial capital expenditures (and therefore depreciation), additions to working capital, and continuation value remain as initially specified in the table. What is the NPV of this project under these alternative assumptions? How does the NPV change if the revenues and operating expenses grow by 5% per year rather than by 3%? D To examine the sensitivity of this project to the discount rate, management would like to compute the NPV for different discount rates. Create a graph, with the discount rate on the x-axis and the NPV on the y-axis, for discount rates ranging from 5% to 30%. For what ranges of discount rates does the project have a positive NPV? cture lightweight trucks? Year Revenues Manufacturing Expenses (other than depreciation) Marketing Expenses Depreciation EBIT Taxes at 35% Unlevered Net Income Depreciation Additions to Net Working Capital Capital Expenditures Continuation Value Free Cash Flow Bauer Industries is an automobile manufacturer. Management is currently evaluating a proposal to build a plant that will manufacture lightweight trucks. Bauer plans to use a cost of capital of 11.8% to evaluate this project. Based on extensive research, it has prepared the incremental free cash flow projections shown below (in millions of dollars): a. For this base-case scenario, what is the NPV of the plant to manufacture lightweight trucks? b. Based on input from the marketing department, Bauer is uncertain about its revenue forecast. In particular, management would like to examine the sensitivity of the NPV to the revenue assumptions. What is the NPV of this project if revenues are 8% higher than forecast? what is the NPV if revenues are 8% lower than forecast? 0 1-9 99.1 -36.1 -9.1 -15.4 38.5 -13.5 25 15.4 -5.5 10 99.1 -36.1 -9.1 -15.4 38.5 -13.5 25 15.4 -5.5 34.9 11.6 46.5 -154.4 -154.4 c. Rather than assuming that cash flows for this project are constant, management would like to explore the sensitivity of its analysis to possible growth in revenues and operating expenses. Specifically, management would like to assume that revenues, manufacturing expenses, and marketing expenses are as given in the table for year 1 and grow by 3% per year every year starting in year 2. Management also plans to assume that the initial capital expenditures (and therefore depreciation), additions to working capital, and continuation value remain as initially specified in the table. What is the NPV of this project under these alternative assumptions? How does the NPV change if the revenues and operating expenses grow by 5% per year rather than by 3% d. To examine the sensitivity of this project to the discount rate, management would like to compute the NPV for different discount rates. Create a graph, with the discount rate on the x-axis and the NPV on the y-axis, for discount rates ranging from 5%-30% For what ranges of discount rates does the project have a positive NPV? Q (a) & (b) Cost of capital Year Current 0 1 2 3 4 5 6 7 8 9 10 a). NPV b). NPV 11.80% Calculations Free cash flow(millions) If revenues are higher If revenues aare lower ($154.40) ($154.40) ($154.40) 34.925 40.0782 29.7718 34.925 40.0782 29.7718 34.925 40.0782 29.7718 34.925 40.0782 29.7718 34.925 40.0782 29.7718 34.925 40.0782 29.7718 34.925 40.0782 29.7718 34.925 40.0782 29.7718 34.925 40.0782 29.7718 46.525 51.6782 41.3718 $43.26 48.36 $69.52 $17.00 77.72 19.01 Year Revenues 0 1-9 91.172 10 91.172 Manufacturing Expenses (other than depreciation) -36.1 -36.1 Marketing Expenses -9.1 -9.1 Depreciation -15.4 -15.4 EBIT 30.572 30.572 Taxes at 35% -10.7002 -10.7002 Unlevered Net Income 19.8718 19.8718 Depreciation 15.4 15.4 Additions to Net Working Capital -5.5 -5.5 Capital Expenditures -154.4 Continuation Value 11.6 Free Cash Flow -154.4 29.7718 41.3718 Q b). Current free cash flow -154.4 34.925 46.525 Free cash flow after increase -154.4 40.0782 51.6782 Free cash flow after decrease -154.4 29.7718 41.3718 Current revenue 99.1 Increase 8% Decrease 8% Growth rate Free cash flow at 3% Free cash flow at 5% Cost of capital Year Revenues Manufacturing Expenses (other than depreciation) Marketing Expenses Depreciation EBIT Taxes at 35% Unlevered Net Income Depreciation Additions to Net Working Capital Capital Expenditures Continuation Value Free Cash Flow NPV when growth is 3% NPV when growth is 5% 5% 5% Q c). 5% 5% -154.4 -154.4 12% 34.925 35.97605 37.05863 34.925 36.67675 38.51609 0 1 2 3 99.1 104.055 109.2578 -36.1 -37.905 -39.80025 -9.1 -9.555 -10.03275 -15.4 -15.4 -15.4 38.5 41.195 44.02475 13.475 14.41825 15.40866 25.025 26.77675 28.61609 15.4 15.4 15.4 -5.5 -5.5 -5.5 -154.4 -154.4 $64.30 $80.16 34.925 36.67675 38.51609 $62.42 $78.05 c). 5% 5% 5% 5% 38.17369 39.3222 40.50517 41.72362 42.97863 44.27129 58.31926 40.44739 42.47526 44.60452 46.84025 49.18776 51.65265 68.01117 4 114.7206 -41.79026 -10.53439 -15.4 46.99599 16.4486 30.54739 15.4 -5.5 5 120.4567 -43.87978 -11.06111 -15.4 50.11579 17.54053 32.57526 15.4 -5.5 6 126.4795 -46.07376 -11.61416 -15.4 53.39158 18.68705 34.70452 15.4 -5.5 7 132.8035 -48.37745 -12.19487 -15.4 56.83116 19.8909 36.94025 15.4 -5.5 8 139.4437 -50.79633 -12.80461 -15.4 60.44271 21.15495 39.28776 15.4 -5.5 9 146.4158 -53.33614 -13.44484 -15.4 64.23485 22.4822 41.75265 15.4 -5.5 10 153.7366 -53.33614 -13.44484 -15.4 71.55564 25.04447 46.51117 15.4 -5.5 11.6 40.44739 42.47526 44.60452 46.84025 49.18776 51.65265 68.01117 Q d). Sensitivity Analysis Disoount rate NPV Year Ranges 30% ($35.13) Free cash flows 0 ($154.40) 1 34.9 2 34.9 3 34.9 4 34.9 5 34.9 6 34.9 7 34.9 8 34.9 9 34.9 10 46.5 5%-18% Disocount rate NPV 5% $116.39 6% $102.78 7% $90.30 8% $78.85 9% $68.33 10% $58.65 11% $49.79 12% $41.54 13% $33.98 14% $26.99 15% $20.54 16% $14.58 17% $9.06 18% $3.95 19% ($0.79) 20% ($5.17) 21% ($9.25) 22% ($13.03) 23% ($16.54) 24% ($19.80) 25% ($22.84) 26% ($25.66) 27% ($28.28) 28% ($30.73) 29% ($33.01) 30% ($35.13) 140 120 100 80 60 NPV 40 20 0 -20 -40 -60 NPV Profile 140 120 100 80 60 NPV 40 20 0 -20 -40 -60 Discount rate