You are called by the kingdom of Wakanda to determine whether a new vibranium manufacturing project is economically desirable. This project will require $500,000,000 to build a plant in the US with the right equipment to extract, refine, and process vibranium ore. Installing and calibrating the equipment in the plant to begin operations will cost an additional $25,000,000. This equipment is categorized as ten-years MACRS property. The project will bring a revenue of $125,000,000 in the first year. After that, the revenue will grow 5% every year as more applications are discovered and the market for this material expands. The main cost of this project is the salary of plant workers, which in the first year adds up to $7,000,000. The salary of these workers will increase with the general inflation rate of 2.5% every year. In addition to this, rent and utilities cost an additional $8,000,000 every year. This cost is expected to stay constant. The project is expected to last ten years, at the end of which all the equipment can be sold for 10% of its original value.

A)Assuming a tax rate of 21% and MARR of 12%, compute income, cash flows, and net present worth over the project life. (100 pts)

B)perform a sensitivity analysis for problem 2 focusing on the workers salary and initial market size as variables of interest. Which of the two variables is most important to the financial feasibility of the project?

C)What is the break-even value for each of these two variables?