Project 2: Buying a new assembly for wheelchair production. Your companies are offered two options that will generate the same revenue for the company each year. The table below shows the initial and annual costs for each option. Option A Option B Initial Investment 1,550,000 1,750,000 Annual cost, including fuel, maintaining and other relevant expenses Year 1 42,000 35,000 Year 2 42,000 35,000 Year 3 42,000 35,000 Year 4 42,000 35,000 Year 5 35,000 3.2. Risk Analysis and Project evaluation: NPV break-even analysis (8 marks) Assume that for Project 2, the company finally chose Option B. It expects to sell 8,500 wheelchairs for an average price of $750 per unit. The assembly in Option B has a residual value of $350 000 at the end of the project. The company will need to add $ 850 000 in working capital which is expected to be fully retrieved at the end of the project. Other information is available below: Depreciation method: straight line Variable cost per unit: $120 Cash fixed costs per year: $35,000 of annual cost for assembly operation + $20,000 other fixed cost Corporate marginal tax: 30% Upon the forecast of unexpected economic conditions that may be caused by the current breakout of corona virus, the company management requires your Team to prepare a risk analysis for the case where the unit price of this product decreases by 25%. Required: perform an NPV break-even analysis to identify break-even sales of the project when the unit price decreases by 25%. Conclusion Summarize / Reflection the outcomes of your group's works (not more than 150 words) Project 2: Buying a new assembly for wheelchair production. Your companies are offered two options that will generate the same revenue for the company each year. The table below shows the initial and annual costs for each option. Option A Option B Initial Investment 1,550,000 1,750,000 Annual cost, including fuel, maintaining and other relevant expenses Year 1 42,000 35,000 Year 2 42,000 35,000 Year 3 42,000 35,000 Year 4 42,000 35,000 Year 5 35,000 3.2. Risk Analysis and Project evaluation: NPV break-even analysis (8 marks) Assume that for Project 2, the company finally chose Option B. It expects to sell 8,500 wheelchairs for an average price of $750 per unit. The assembly in Option B has a residual value of $350 000 at the end of the project. The company will need to add $ 850 000 in working capital which is expected to be fully retrieved at the end of the project. Other information is available below: Depreciation method: straight line Variable cost per unit: $120 Cash fixed costs per year: $35,000 of annual cost for assembly operation + $20,000 other fixed cost Corporate marginal tax: 30% Upon the forecast of unexpected economic conditions that may be caused by the current breakout of corona virus, the company management requires your Team to prepare a risk analysis for the case where the unit price of this product decreases by 25%. Required: perform an NPV break-even analysis to identify break-even sales of the project when the unit price decreases by 25%. Conclusion Summarize / Reflection the outcomes of your group's works (not more than 150 words)