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Schweser Satellites Inc. produces satellite earth stations that sell for $95,000each. The firm's fixed costs, F, are $1.5 million, 50 earth stations are produced and

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Schweser Satellites Inc. produces satellite earth stations that sell for $95,000each. The firm's fixed costs, F, are $1.5 million, 50 earth stations are produced and sold each year, profits total $400,000; and the firm s assets (all equity financed) are $6 million. The firm estimates that it can change its production process, adding $4.5 million to investment and $350,000 to fixed operating costs. This change will (1) reduce variable costs per unit by $11,000 and (2) increase output by 16 units, but (3) the sales price on all units will have to be lowered to $90,000 to permit sales of the additional output. The firm has tax loss carry forwards that render its tax rate zero its cost of equity is 13%, and it uses no debt. The data has been collected in the Microsoft Excel Ontine file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet a. What is the incremental profit? To get a rough idea of the project's profitability, Wht is the project's expected rate of retum for the next year celined as the incremental profit diyided by the investment? do not round intermediate calculations. Round your ansiver to two decimal places

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