Use the attached file answer the following questions.
1. Use 2.5% as the average inflation rate and 14% as the hurdle rate, obtain the NPV (net present value) of this sourcing project. Is this project worth doing? Why so?
2. Assuming inflows of 2028-2030 are not certain but will follow distributions below, Re-evaluate the Lorain Location. What is the percentage of NPV being greater than the initially obtained value in step 1 (not zero). (hint: set your lower threshold value to the previous NPV, see what is the percentage greater than that value.)
Year Inflow Distribution
2028 T(50000, 120000, 180000)
2029 N(130000, 4000)
2030 U(60000, 120000)
* Triangular distribution(lowest possible, most likely, highest possible value)
* Normal distribution(average, standard deviation)
* Uniform distribution(lowest possible, highest possible)
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.