please ensure that the answer is correct and clear with full calculations.

The directors of company MILK Ltd is planning to invest in a new project that will lasts for five years. Following a preliminary analysis on the market, the accountant of the firm has made the following forecast: Sales Volume (units) per year 100,000 S Selling price per unit Variable costs per unit 65 Incremental fixed costs 350,000 Cost of machine 900,000 Scrap value of machine at end of the project 50,000 The company cost of capital is 10%. Required: (a)Calculate the NPV. [4 Marks] (b) Calculate the sensitivity of the project in relation to: [10 Marks] (i) Sales Volume (ii) Selling price (iii) Variable costs (c) Discuss why it is important to take into consideration risk and uncertainty while appraising a project.[ 6 Marks] 85