Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEl), a large, publicly traded firm that is the market share leader in radar detection systems (RDSs).T 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 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 $13.32 million to build. The following market data on DEI's securities are current would be $7 .68 million after taxes. In five years, the land will be worth $7.98 million after taxes. The company wants to build its new manufacturing plant on this land, the plant will cost 45,800 7.1 percent coupon bonds outstanding, 19 years to maturity, selling for 94.2 percent of par, the bonds have a $1,000 par value each and make semiannual payments Debt Common stock: 758,000 shares outstanding, selling for $94.80 per share, the beta is 1.28 Preferred stock:35,800 shares of 6.35 percent preferred stock outstanding, selling for $92.80 per share Market DEI's tax rate is 38 percent. The project requires $865,000 in initial net working capital investment to get operational a. 7.15 percent expected market risk premium; 5.35 percent risk-free rate. Calculate the project's Time 0 cash flow, taking into account all side effects. Assume that any NWC raised does not require floatation costs. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer in dollars, not millions of dollars,e.g, 1,234,567) Time O cash flow b. located overseas. Management has told you to use an adjustment factor of The new RDS project is somewhat riskier than a typical project for DEI, primarily because the plant is being cent to account for this increased riskiness. Calculate the appropriate discount raso to use when evakuaing DEIs projet. (0 not round intermediate calculations and enter your riskiness. Caloulate the answer as a percent rounded to 2 decimal places,.g,32.16) Discount rate project (le, the end of Year 5), the plant can be scrapped for $1.58 million. What The manufacturing plant has an eight-year tax life, and DEI uses straight-ine depreciation. At the end of the ,234,567.) Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, eg.1 is the aftertax salvage value of this manufacturing plant? ( Aftertax salvage value d. per RDS. What is the annual operating cash flow, OCF, from this project? (Do costs. The plan is to manufacture 13,800 RDSs per year and sell them at $11,200 per machine; the variable production costs are $10,400 will incur not round intermediate calculations and enter your answer in dollars, not millions of dollars, e 1.234.567