Chakngeny Diaries Ltd is considering investing in a new milk cooling system with the following characteristics:A Initial Investment KES 7,360,000-no scrap valueB Expected Economic Life 5 yearsC Sales Volume 1,120,000 litres per yearD Selling Price KES 15 per litreE Variable Costs KES 11 per litreF Fixed Costs including Depreciation KES 3,100,000 per yearThe company’s opportunity cost of capital is 15% and it uses the straight line depreciation method. Its marginal tax rate is 40%.Required:a. Calculate the NPV (unadjusted for risk) of the project. (11 marks)b. Recalculate the NPV assuming each of the characteristics, B, and D varies, in isolation, adversely by 10%. (12 marks)c. Comment briefly on the vulnerability of the two variables in (b) above. (2 marks)