Your company makes cell phone cases and is considering rolling out a new cell phone case. Engineering department has invested $100,000 in coming up with this design. In addition, marketing performed some research which cost $50,000, indicating that we could sell a bunch of them for 4 years. They also discovered that we would sell 55% less of the old cases. In order to manufacture the new case, $200,000 in new equipment would be needed. The equipment has a useful life of 4 years. Tax rate for the company is 31% and your required return is 15%. Working capital (inventory mostly) of 20% net sales will be needed starting at the end of year 1. Below is the cost and market information for the old and new case:Old Case: Price: $19.50Variable Costs: $9.50Fixed Costs: $25,000Unit Sales: Year 1: 10,000Year 2: 8,000Year 3: 3,000Year 4: 2,000New Case: Price: $31Variable Costs: $15.75Fixed Costs: $25,000Unit Sales: Year 1: 10,000Year 2: 15,000Year 3: 12,000Year 4: 3,000Requirement: 1. Create a proforma for the new product including only incremental cashflows. (45-50 points)2. Calculate NPV, irr, payback, discounted payback and profitability index (10 points)3. Would you recommend the company make the new case? Why or Why not? Make sure to type your answer into excel. (5 points)Scenario B (5-10 points)What is the sensitivity of NPV to each change in units sold per year? Using the proforma created in A, generate another proforma and calculate the sensitivity. Show your work. Scenario C (10-15 points)This new case idea is interesting, but we want to test the assumptions by a factor of +/- 12.5%. Create base, best and worst case scenarios for sales (Units sold & price), variable costs (units sold and vc) and fixed costs. Please show upper, lower and base case and best and worst case scenarios for total revenue, variable costs and fixed costs. Scenario D (10 points)Ignoring erosion, taxes, after tax salvage value and NWC requirements, calculate cash, accounting and financial break evens for each year.