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 detections 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 $3.9 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. The land was appraised last week for $4.4 million on an after-tax basis. The company wants to build its new manufacturing plant on this land; the plant will cost $37 million to build The manufacturing plant belongs to CCA Class 43 (30%). At the end of the project (the end of year 5), the plant can be scrapped for S5.1 million. The company will incur $6,700,000 in annual fixed costs. The plan is to manufacture 15.300 RDSs per year and sell them at $11,450 per machine. The variable production costs are S9,500 per RDS The following market data on DEI's securities are current