Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large, publicly traded firm that is the market share leader in radar detection systems (RDSS). The company is looking at setting up a manufacturing plant overseas to produce a new line of RDSs. This will be a five-year project. The company bought some land three years ago for $7.2 million in anticipation of using it as a toxic dump site for waste chemicals, but it built a piping system to safely discard the chemicals instead. If the land were sold today, the net proceeds would be $7.66 million after taxes. In five years, the land will be worth $7.96 million after taxes. The company wants to build its new manufacturing plant on this land; the plant will cost $13.24 million to build. The following market data on DEI's securities are current: Debt Common stock: 91,200 6.9 percent coupon bonds outstanding, 23 years to maturity, selling for 94.4 percent of par; the bonds have a $1,000 par value each and make semiannual payments. Market: 1,600,000 shares outstanding, selling for $94.60 per share; the beta is 1.26. Preferred stack: 75,000 shares of 8.25 percent preferred stock outstanding. selling for $92.60 per share. 6.85 percent expected market risk premium: 5.15 percent risk- free rate. DEI's tax rate is 21 percent. The project requires $855,000 in initial networking capital investment to get operational Calculate the project's Time 0 cash flow, taking jos assunt all side effects. Assume that any NWC raised does not require floatation costs. The new RDS project is somewhat riskier than a typical project for DEI, primarily because the plant is being located overseas. Management has told you to use an adjustment factor of +3 percent to account for this increased riskiness. Calculate the appropriate discount rate to use when evaluating DEF's project. The manufacturing plant has an eight-year tax life, and DEI uses straight-line depreciation. At the end of the project (ie.. the end of Year 5), the plant can be scrapped for $1.56 million. What is the sectas salvage value of this manufacturing plant? de company will incur $2,360,000 in annual fixed casts. The plan is to manufacture 13,600 RDSs per year and sell them at $11.000 per machine, the variable production costs are $10,200 per RDS What is the annual operating cash flow. OCF from this project? Calculate the project's net present value cua, the project's internal rate of return