Suppose you are a senior financial analyst at PADICO and you are analysing the following project, where all of the dollar figures are in thousands of dollars. In year $0,$ the project requires an $$11,350$ investment in plant and equipment, which is depreciated using the straight$-$line method over seven years, and has a salvage value of $$1,400$ in year $7.$ The project is forecast to generate sales of $2,000$ units in year $1,$ growing at $1\mathrm{.}5\%$ a year until year $5,$ then the growth rate declines to $0\%$ in years $6$ and $7.$ The cost of capital is forecast to be $11\mathrm{.}0\%$ in years $1-6,$ rising to $12\mathrm{.}2\%$ in years $6$ and $7.$ The tax rate is forecast to be a constant $35\mathrm{.}0\%.$ Sales revenue per unit is forecast to be $$9\mathrm{.}70$ in year $1$ and then grow at $1\%$ per annum. Variable cost per unit for Direct Labor, Materials, Selling Expenses, and Other Variable Costs are forecast to be $$3\mathrm{.}50,$$$2\mathrm{.}00,$ $$1\mathrm{.}20,$ and $$0\mathrm{.}70,$ respectively, in year $1$ and then grow at $1\%$ per annum. Cash fixed costs for Lease Payment, Property Taxes, Administration, Advertising, and other cash fixed costs are forecast to be $$2,800,$$$580,$$$450,$$$930,$ and $$520,$ respectively, in year $1$ and then grow at $1\%$ per annum. The project will require working capital in the amount of $$0\mathrm{.}87$ in year $0$ for every unit of next year's forecasted sales and this amount will grow $1\%$ per annum thereafter.

You are required to build your detailed model in Excel to calculate the project's NPV$.$

Assume that the product life$-$cycle of seven years is viewed as a safe bet, but that the scale of demand for the product is highly uncertain. Analyze the sensitivity of the project NPV to the unit sales scale factor and to the cost of capital. $($Hint: Use two way datatable$)($this is a bonus part$).$