Part 3. Perform risk analyses for the project. (20 marks) Your team has identified several key aspects for the project. The following table shows the base-case assumptions, together with the best case and worst case. Parameter Initial Worst Case Best case Assumption First-year sales (as a 3% 1% 5% percentage of the total revenues in the latest reporting period) Revenue growth rate 10% for the Constant after the Constant after the second year, 7% first year at a rate first year at a rate for the third, and of 0% of 10% 2% annually for the final two years Project's EBITDA/Sales Similar to -6% to the initial +6% to the initial profit margin existing projects assumption assumption Net Working Capital $25,000,000 $35,000,000 $15,000,000 Beta The estimated The upper bound The lower bound beta of 95% of the 95% confidence confidence interval interval (a) Perform break-even analysis with respect to the first-year sales parameter. (b) Perform sensitivity analysis for each parameter. Evaluate which parameter is the most important to the project. Part 3. Perform risk analyses for the project. (20 marks) Your team has identified several key aspects for the project. The following table shows the base-case assumptions, together with the best case and worst case. Parameter Initial Worst Case Best case Assumption First-year sales (as a 3% 1% 5% percentage of the total revenues in the latest reporting period) Revenue growth rate 10% for the Constant after the Constant after the second year, 7% first year at a rate first year at a rate for the third, and of 0% of 10% 2% annually for the final two years Project's EBITDA/Sales Similar to -6% to the initial +6% to the initial profit margin existing projects assumption assumption Net Working Capital $25,000,000 $35,000,000 $15,000,000 Beta The estimated The upper bound The lower bound beta of 95% of the 95% confidence confidence interval interval (a) Perform break-even analysis with respect to the first-year sales parameter. (b) Perform sensitivity analysis for each parameter. Evaluate which parameter is the most important to the project