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Evaluate the Pear Computer Company proposal.2) Conduct a sensitivity analysis that focuses on the cost ofcapital. For a best case scenario, decrease the cost of capital bythree percentage points. For a worst case scenario, increase thecost of capital by three percentage points.3) You must provide one spreadsheet for each of the threesituations—the base case estimate, the best case, and the worstcase.4) What do you recommend? Explain. You may type yourrecommendation and explanation on the Excel sheet. Pear Computer’sresearch and development (R&D) department has developed aproposal for a new generation of tablet-sized computers.1. Project’s useful life: 4 years.2. Capital expenditures: $25,000,000.3. Depreciation: straight-line over 4 years.4. Sales: 25000 units in year 1, 95,000 in year 2, 70,000 inyear 3, 25,000 in year 4. The sales price is expected to remainconstant at $580.5. Cost of goods sold (not counting depreciation): 60% ofsales.6. Selling, general and administrative expenses: $1,500,000 thefirst year, $1,750,000 the second year, $1,000,000 the third, and$500,000 the 4th .7. R&D: $1,500,000 spent one year ago.8. Initial investment in net working capital: $1,250,000. Thenit increases by $10,000 for each of three years and finally isfully recovered in the final year.9. Tax rate: 38%.10. Cost of Capital: 14%.