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The firm is considering whether to invest £6

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The firm is considering whether to invest £6.3 Million in Year 0 to develop an autonomous vehicle for industrial applications for which they expect Sales during Years 1 – 5.
i) Calculate and comment on the Net Present Value (NPV) for this project at a 10% rate given that the firm expects annual Sales Revenues (in £) equal to five times 18MN000
(where MN are the last 2 digits of your student id) and a Profit Margin of 25%.
ii) Examine the sensitivity of the project to sales erosion (of 10%, 20% and 30%) including the project NPV (using the same 10% discount rate). What do you advise?
iii) Given there is a 40% likelihood that the project has sales erosion of 30%: calculate the Expected Value (EV) for the project. The firm only has finance to fund one project,
compare this result to a project with an EV of £2 Million – which do you recommend?