bSchweser Satellites Inc. produces satellite earth stations that sell for $$110,000$ each. The firm's fixed costs, F$,$ are $$3$ million, $50$ earth stations are produced and sold each year, profits total $$400,000,$ and the firm's assets $($all equity financed$)$ are $$4$ million. The firm estimates that it can change its production process, adding $$3$ million to assets and $$300,000$ to fixed operating costs. This change will reduce variable costs per unit by $$11,000$ and increase output by $15$ units. However, the sales price on all units must be lowered to $$100,000$ to permit sales of the additional output. The firm has tax loss carryforwards that render its tax rate zero, its cost of equity is $16\%,$ and it uses no debt.

What is the incremental profit? Enter your answer in dollars. For example, an answer of $$4$ million should be entered as $4,000,000,$ not $4.$ Round your answer to the nearest dollar.

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To get a rough idea of the project's profitability, what is the project's expected rate of return for the next year $($defined as the incremental profit divided by the investment$)?$ Round your answer to two decimal places.

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