Question 1 [20 marks] An electric vehicle battery manufacturer is evaluating an investment opportunity which will increase its production capacity significantly. The firm's analyst has estimated the following information: - The cost of the new production facility is estimated at $480 million, with a useful life of 10 years and a salvage value of $60 million at the end of 10 th year. - The new facility is expected to produce 80,000 units of EV batteries per year. All produced batteries are expected to be sold due to strong demand. - The sale price of the battery is $6,000 per unit. - Production requires 20 hours of labor per unit, and the estimated labor cost is $40 per hour. It also requires raw materials and various parts that cost $3,000 per unit. - The operation of the new production facility requires additional operating expenses, estimated at $44 million per year. Answer questions a) and b) below. a) [10 marks] Calculate the following two items: i) depreciation expense per year (assume straight-line depreciation); and ii) the production cost (i.e., cost of goods sold) per year. *For full credit, you must show the steps/calculation toward your results. b) [10 marks] Calculate the project's EBIT per year. *For full credit, you must show the steps/calculation toward your results