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Schweser Satellites Ine produces satellite earth stations that sell for $110,000 each. The firm's fixed costs, F, are $3 milion, 50 earth stations are produced

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Schweser Satellites Ine produces satellite earth stations that sell for $110,000 each. The firm's fixed costs, F, are $3 milion, 50 earth stations are produced and sold each year, profits total $600,000, and the firm's assets (all equity financed) are $5 milion. The firm estimates that it can change its production process, boding $4 milton to assets and $500,000 to fixed operating costs. This change will reduce variable costs per unit by $9,000 and increase output by 20 units. However, the sales peice on all units must be lowered to $100,000 to permit sales of the additional output. The firm has tox loss carryforwards that render its tax rate zero, its cost of equity is 17%, and if uses no debt. a. What is the incremental profit? Enter your answer in dollars. For example, an answer of $4 mullion should be entered as 4,000,000, not 4 . Round your answer to the nearest doliar. 5 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: Schweser Satellites Ine produces satellite earth stations that sell for $110,000 each. The firm's fixed costs, F, are $3 milion, 50 earth stations are produced and sold each year, profits total $600,000, and the firm's assets (all equity financed) are $5 milion. The firm estimates that it can change its production process, boding $4 milton to assets and $500,000 to fixed operating costs. This change will reduce variable costs per unit by $9,000 and increase output by 20 units. However, the sales peice on all units must be lowered to $100,000 to permit sales of the additional output. The firm has tox loss carryforwards that render its tax rate zero, its cost of equity is 17%, and if uses no debt. a. What is the incremental profit? Enter your answer in dollars. For example, an answer of $4 mullion should be entered as 4,000,000, not 4 . Round your answer to the nearest doliar. 5 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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