Year Revenues Manufacturing Expenses (other than depreciation Marketing Expenses Depreciation EB Taxes at 35% Unlevered Net Income Depreciation Additions to Net Working Capital tal Expenditures Cap 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? 1.9 10 991 199.1 9.1 -15.4 -1154 15.4 4154.24