Using the assumptions, esteem the project's cash flows. Are the projections realistic? If not, what changes might you incorporate? Do a sensitivity analysis with the assumption that both prices and expenses grow at a rate of 3%. (Recalculate cash flows and NPV with this assumption).

Operating Assumptions 10:10 1:12 Total Capacity \10's! Capacity LHtilization* \Ualt Y'allune* Selling Price For Unit : Growing at LITF 191 F 184 F L& F 1.57 7. F 217 HEVENUE* |uses likes| 14101 141^41 Raw Materials Per Unit Grazing It [154 \Manufacturing Cheerhead Lincrazy at 1. TO`\ 1.819\ 1.514 4052 4 171\ 4175 Whaintenance Expense Leaving at 7 7901\\ 1718| 7: 459 7517 ITAT 7.515 Salaries Inhar Cart Managers\\ Average Annual Fully Loaded Last 1 9 96\ IT1 4 ITT4\\ IF^. I 7181 Total Salaried Labor Cost 1.THE MVENGE Fully Loaded Hourly Coz^ 1 986 71.47 IZIT 17515 71. 75 7495) 19 45\ 15 14| Hours Per Vez Cost Per Hour; Employee Number of Hourly W/acker 450 471| 545\ BIE 6IS Total Hourly Labor Cost four's! Total Labor Last KAHLO WOUL17| 714121 1:146| LI14{| HOW``s| }1^| #^`s| 141 14^| 15, 4152 Selling . Lizneral & Administrative thevenue* Day's Sales Thatstanding* AT EX Days Sales Inventory* Days Payable Outstanding* 14 1 {\ 14 1 0 14 1 2\ 14 1 7\ 14 1 2 14 1 2\ 14 1 2\ 141 2\ 14 1 2\ 14 1 2 "I'] Based on historical averages . Hourly Labor Cost Per Lin's [1 41 1.15% Units For Total Labor Hours* 0 748^ Explanations :` Hugs Sales Outstanding. Average number of days It takes for the company' to collect his reachabler Account Reachable' Khaled`illi Lar s Bale Inventor's Average number at day's It Like for the company' to sell Its Inventory = Inventories' Khaled^till!` Our ` Parables Outstanding _ Average gunther at does It takes for the company pay Its parables Account Forchile' ; Cost of goods soldcrazy Last of goods sold - raw material and + Libor Expense + manufacturing overhead + maintenance Eugenie*