You are thinking of investing $1000 in a machine today. It would be used to produce sales for 5 years. The projected sales number in year 1 is 800, after which sales will grow at 3% annually. Cost of manufacturing for this project is 40% of sales, the overhead is 15% of sales, receivables are maintained at 20% of sales for years 1-4, payables are maintained at 20% of cost of manufacturing for years 1-4. You also know that the machine is depreciated with the straight line method over the next 10 years, and the project needs an additional investment in raw materials at time zero to get the production off the ground. The materials cost $200 and will need to be paid cash. Materials balance will be kept at $200 as long as it makes economic sense. The machine can be sold for $300 after the project ends. Marginal corporate tax rate is 35%. Cost of capital is 8% p.a. The project is financed 100% equity. a) Using FCF and common business sense, find the value of the project. b) Perform sensitivity analysis c) Perform break-even analysis with respect to 1) first year sales 2) discount rate For full credit explain all steps. You are thinking of investing $1000 in a machine today. It would be used to produce sales for 5 years. The projected sales number in year 1 is 800, after which sales will grow at 3% annually. Cost of manufacturing for this project is 40% of sales, the overhead is 15% of sales, receivables are maintained at 20% of sales for years 1-4, payables are maintained at 20% of cost of manufacturing for years 1-4. You also know that the machine is depreciated with the straight line method over the next 10 years, and the project needs an additional investment in raw materials at time zero to get the production off the ground. The materials cost $200 and will need to be paid cash. Materials balance will be kept at $200 as long as it makes economic sense. The machine can be sold for $300 after the project ends. Marginal corporate tax rate is 35%. Cost of capital is 8% p.a. The project is financed 100% equity. a) Using FCF and common business sense, find the value of the project. b) Perform sensitivity analysis c) Perform break-even analysis with respect to 1) first year sales 2) discount rate For full credit explain all steps