AK Radio has hired a consultant to help in the assessment of a project to launch a satellite to deliver a $24/7$ infomercial radio station to the world. The satellite costs $$400$ million and has a CCA rate of $30$ percent. The satellite is expected to last $10$ years and then burn up in the earth$$s atmosphere. AK does not expect to replace the satellite, and the asset class will terminate in $10$ years. The launch is expected to take place in two years and will cost $$5$ million. Satellite launches are risky undertakings, and there is a $30-$percent chance that the rocket taking the satellite into space will explode on take$-$off. If the launch fails, AK will close the business, as it will have only $$50$ million of cash left and will be unable to acquire another satellite.

a$.$ Calculate the NPV of a terrestrial project. Assume it lasts $12$ years. $($Include the half$-$year rule.$)$

b$.$ If the satellite launch project is successful, calculate beginning UCC, CCA, ending UCC, and after$-$tax cash flow every year. Calculate the present value of CCA terminal loss. Calculate the NPV of the satellite launch project if it is successful.

c$.$ If the satellite launch project fails, calculate beginning UCC, CCA, ending UCC, and after$-$tax cash flow every year. Calculate the present value of CCA terminal loss. Calculate the NPV of the satellite launch project if it fails.

d$.$ Calculate the NPV of the satellite launch project. Do you recommend that AK invest in the satellite launch project?

e$.$ Describe how your analysis would change if the licensing restriction allowed AK to decide on terrestrial or space in two years.