Solve using excel and it's functions: ABC Inc. is considering a new project. In order to undertake the new project, ABC Inc. would need to purchase a new machine. The machine will cost $$7,200,000.$ The machine will be used for the project and the project will run for $7$ years. The expected salvage of the machine at the end of the project is $$1,100,000.$ The machine will be used to produce widgets. The manufacturing department has forecasted that the company will be able to sell $520,000$ widgets per year. The manufacturing department believes that the company will be able to charge $$52$ per widget. The variable cost per widget is expected to be $$43.$ The company believes that the project will require an initial investment in operating net working capital of $$370,000.$ Thereafter, operating net working capital will be $14\%$ of sales. The Executive Vice President will be in charge of this new project. She earns a salary of $$550,000$ per year. The CEO expects the Executive Vice President to spend half of her time overseeing the project. If the project goes ahead, the Executive Vice President will receive an annual bonus payment of $$120,000.$ If the company does not complete the new project, the Executive Vice President will remain with the company and continue to earn her salary of $$550,000.$ She will not receive the annual bonus payment. If the project is accepted, the company will need to hire a project manager. The project manager will earn a salary of $$435,000$ per year during the life of the project. The CCA rate is $30\%,$ the tax rate is $38\%,$ and the required rate of return is $16\%.$ Additionally, assume the asset class will remain open at the end of the project. a$)$ Using Net Present Value $($NPV$)$ calculation, determine if the company should purchase the new machine. b$)$ Your boss has a number of concerns regarding the project. Therefore, she has asked you to determine the number of units that the company must sell each year for the NPV to be greater than zero. c$)$ Your boss has also asked you to determine which of the following inputs: units sold, price per unit, variable cost per unit, or project manager$$s salary, has the greatest forecasting risk. Therefore, your boss has asked you to do a sensitivity analysis. She wants you to vary the input forecast by $1\%$ and determine the impact on the NPV of the project. Based on this analysis, determine which input has the greatest forecasting risk. Finally, your boss has asked you to perform a scenario analysis. She wants you to consider two new scenarios: a pessimistic one and an optimistic one. She wishes to know the NPV of the project under these two scenarios. The value of the inputs for each scenario are shown in the table below. $$ Pessimistic Optimistic Units sold $330,000750,000$ Price per unit $$50$ $$59$ Variable cost per unit $$46$ $$38$ Project Manager$$s Salary $$605,000$ $$295,000$ Salvage Value $$300,000$ $$1,500,000$