8 10 points eBook Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI). a large, publicly traded firm that is the market share leader in radar detection systems (RDSS). The company is looking at setting up a manufacturing plant overseas to produce a new line of RDSs. This will be a five-year project. The company bought some lond three years ago for $73 million in anticipation of using it as a toxic dump site for waste chemicals, but it built a piping system to safely discard the chemicals instead. If the land were sold today, the net proceeds would be $78 million after taxes in five years, the land will be worth $8.1 milion after taxes. The company wants to build its new manufacturing plant on this land the plant will cost $13.8 million to build. The following market data on Der's securities are current Debt 94.000 6.8 percent coupon bonds outstanding, 27 years to maturity selling for 93.0 percent of per the bonds have a $1.000 par value each and make semiannual payments Common stock 1880000 shares outstanding, selling for $96.00 per share the beta is Pit Reference 109 Preferred stock 89.000 shares of 6.25 percent preferred stock outstanding, selling for 59400 per shore Marker 72 percent expected market is premium 515 percenti Bee rate DEI's tax rate is 25 percent. The project requires $925,000 in initial networking capital Investment to get operational a. Calculate the project's Time Ocash flow, taking into account all side effects Assume that any NWC raised does not require toatation costs. (A negative answer should be indicated by a minus sign. Do not found intermediate calculations and enter your answer in dollars, not millions of dollars. e... 1.234,567) b. The new RDS project is somewhat risker than a typical project for DEL primarily because the plant is being located overseas Moriagement has told you to use an adjustment factor of -2 percent to account for this increased skiness Calculate the