Required information [The following information applies to the questions displayed below.] Because of increased consumer demand for fuel-efficient, alternative-energy automobiles, Global Auto Company is considering investing in a new hybrid crossover vehicle. Development costs each year for a 2-year period for this new vehicle are estimated as $750 million. Tooling and other setup costs in year 2 are estimated at $1 billion. Actual production and sales are estimated to begin in year 3. It is anticipated that the plant being envisioned could produce vehicles for 6 years. Each vehicle sold is estimated to provide $3,500 of net cash flow (pretax). The estimated salvage value of the manufacturing plant after 6 years of operation is thought to be $250 million. Assume that all cash flows take place at yearend and that the pretax WACC (discount rate) for Global Auto is 15\%. Income tax effects can be ignored in this problem. quired: What minimum volume of car sales (per year, in the 6-year life of the plant) is needed to make this proposed investment acceptable ing NPV as the decision criterion? (Note: For calculating present values of after-tax cash flows, use the following formula rather than e PV factors presented in Table 1 in Appendix C: PVi=1/(1+r)i, where r= discount rate (WACC) and i (year) =18. Also, use the Goal ek function in Excel to answer this question.) (Round your answer to the nearest whole number.) How does your answer in requirement 1 change if the company's pretax WACC is 16% ? 14% ? Do you think the estimated NPV of this oject is sensitive to the estimate of the company's discount rate? (Round your answers to the nearest whole number.) TARI F. 1 Precent Valne of $1