PLEASE SOLVE BOTH OPTION A AND B

Buhler Industries is a tarm implement manufacturer Management is currently evaluating a proposal to build a plant that will manufaiiure lightweight tractors Buhler plans to use a cost of capital of 12% to evaluate this project Based on extensive research, it has prepared the following incomplete incremental free cash ow projections (in millions of dollars) Free Cash Flow ($000,0003) Year 0 Years 19 Year 10 Revenues 113 00 113.00 7 Manufacturing expenses [other than depreciation) 7 30 00 7 30 00 7 Marketing expenses 7 11 00 7 11 (10 7 CCA 7 '2 = EBJT 7 '1 7 Taxes (35%) 7 ? : Unlevered net income 7 '2 + CCA 7 7 7 Increases in networking capital 7 5 00 7 5 00 7 Capital expenditures 7 142 (10 + Continuation value 12 00 = Free cash ow 7 142 (10 2 ? The relevant CCA rate for the caprtal expenditures is 10% Assume assets are never sold a, For this baseecase scenario, what is the NPVuf the plant to manufacture lightweight traders? h, Based on input from the marketing department Hunter is uncertain about its revenue forecast ln particular' management would like to examine the sensitivity of the NPVto the revenue assumptions, What is the NPV of this proiect if revenues are 10% higher than forecast? What is the NPV 01 this project if revenues are 10% lower than forecast