.\" To determine the free cash ow, deduct the additional capital investment and the change in net working capital each year. Use Excel to determine the NW of the project with a 12% cost of capital. Also calculate the IRR of the project using Excel's IHR function. Perform a sensitivity analysis by varying the project forecasts as follows: Suppose rst year sales will equal 2%-4% of IBM's revenues. Suppose the cost of capital is 1D%15%. Suppose revenue growth is constant after the rst year at a rate of D%1D%