Given the information below, what is the net present value of this project?

You have recently been hired as a financial advisor for Aura Intelligence, Inc. The company is considering investing in a new affordable cell phone that has improved video quality, battery life, and durability relative to previous editions. Following discussions between the sales and marketing departments, the company has decided to price the new phone at $480. The company estimates that variable costs for producing each phone will be $315. The sales department estimates that the company can sell 1.5 million units in the first year of the projects life, and the firm expects to sell an additional 250,000 units each year (i.e., 1.75 million units in the second year, 2 million units in the third year, etc.) until the project is wrapped up at the end of the fifth year. Further assume that the selling price per phone will decrease by $30 per year given the release of newer versions. This $30 decrease is a reduction from the previous year. Variable costs per phone are expected to decrease by $20 each year due to technological improvements in the manufacturing process.

Fixed costs for the project are expected to be $40 million per year. Moreover, the company will need to invest a total of $750 million in fixed assets that will be 100% depreciable on an accelerated basis, with the machinery classified as 10-year property under the Modified Accelerated Cost Recovery System (MACRS). (The 10-year MACRS depreciation schedule is included below.) The company will also require an additional investment of $150 million in net working capital, and 100% of this investment will be recovered at the end of the fifth year. Year Depreciation Rate

Year 1: 10.00%

Year 2: 18.00%

Year 3: 14.40%

Year 4: 11.52%

\Year 5: 9.22%

Year 6: 7.37%

Year 7: 6.55%

Year 8: 6.55%

Year 9: 6.56%

Year 10: 6.55%

Year 11: 3.28%

You have also collected the following information:

The risk-free rate in the market is 3.13 percent; the company has a beta of 2.65; and the expected market return is 7.52 percent.

The firm has 300,000 bonds outstanding with each bond currently trading at 95.4 percent of face value. The firms outstanding bonds each have a face value of $1,000, mature in 13 years, have a coupon rate of 5.8 percent, and pay interest semi-annually.

Additionally, the firm has 1.5 million shares of common stock outstanding that are trading at $211 per share.

Finally, the firm has 420,000 shares of 10.75% preferred stock outstanding that are currently priced at $105 per share. The preferred stock has a face value of $100 each.

Assume the corporate tax rate is 21 percent. Please show work with steps either in excel or. by hand which ever is easier.

Will upvote! Thank you so much.