using the Decision-Making Examples manual), you developed a simplespreadsheet modelling for Acron, a large drug company. You answered severalquestions on company production of drugs and their effect on the financialinvestments(NPV). Now, use the fully developed spreadsheet (after completing themanual) and perform below changes on the model,1. Modify Acron`s model so that development lasts for an extra year.Specifically, assume that development costs of $7.2million and $2.1million areincurred at the beginnings of years 1 and 2, and then the sales in the currentmodel occur one year later, that is, from year 2 until year 21. Again, calculatethe NPV discounted back to the beginning of year 1, and perform the samesensitivity analyses. Comment on the effects of this change in timing.2. Modify Acron`s model so that sales increase, then stay steady, and finallydecrease. Specifically, assume that the gross margin is $1.2million in year 1,then increases by 10% annually through year 6, then stays constant throughyear 10, and finally decreases by 5% annually through year 20. Perform asensitivity analysis with a two-way data table to see how NPV varies with thelength of the increase period (currently 6 years) and the length of the constantperiod(currently 4 years). Comment on whether Acron should pursue thedrug, given your results.3. Create a one-way data table in the Acron model to see how the NPV varieswith discount rate, which is allowed to vary from 8% to 18% in increments of0.5%. Explain intuitively why the results go in the direction they go- that is, theNPV decreases as the discount rate increases. Should Acron Pursue the drugfor all of these discount rates?Part 2-Outcomes- 1 mark Page NumberAnswers for 3 questions on the manualChanges to spreadsheet with costs,NPV, Sensitivity Analyses andDiscussionChanges to spreadsheet with cost, two-way data table, NPV, sensitivity analysisand discussionChanges to spreadsheet with cost, one-way data, discount factor changes withincrements, discussion on changesShould Acron pursue the drug?