Suppose you have been hired as a financial consutant to Defense Electronics, Incorporated $($DE$),$ a large. publicly traded firm:that isthe market share leader in radar detection systems $($RDSS$).$ The company is looking at setting up a manufacturing plant overseas toproduce a new line of RDSS$.$ This will be a five year project The company bought some land three years ago for $$71$ million $$nanticipation of using it as a toxic dump site for w$$ste chemicals, but it built a piping system to safely discard the chemicals instead Ifthe land were sold today. the net proceeds would be $$764$ milion after taxes In five years, the land will be worth $$794$ millon aftertaxes. The company wants to build its new manufacturing plant on this land, the plant will cost $$13\mathrm{.}16$ million to build. The followingmarket data on DEl's securities are currentDebt:Common stock:Preferred stock:Market:$90,8007\mathrm{.}2$ percent coupon bonds outstanding, $26$ years to maturity,DEl'S tax rate is $24$ percent The project requires $$845,000$ in initial net working capital investment to qet operationalselling for $94\mathrm{.}6$ percent of par; the bonds have a $$1,000$ par val$$e eachand make semiannualpayments.a$.$ Calculate the project's Time $0$ cash flow, taking into account all side effects. Assumne that any NWC raised does not requirefloatation costs$\mathrm{.}1560,000$ shares outstanding, selling for $$94\mathrm{.}40$ per share; the beta is$1\mathrm{.}24.$Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your. answer indollars, not millions of dollars, e$.$g$.,1,234,567\mathrm{.}73,000$ shares of $6\mathrm{.}4-$percent preferred stock outstanding, selling for$$92\mathrm{.}40$ per sthare.b$.$ The new RDS project is somewhat riskier than a typical project for DEI primarily because the plant is being located overseas.Management has told you to use an adjustment factor of $1$ percent to accOUnt for this increased riskiness. Calculate theappropriate discount rate to use when evaluating DEl'S prOject$7\mathrm{.}2$ percent expected market risk premium ; $5\mathrm{.}05$ percent risk$-$free rate.Note: Do not round intermediate calculations and enter your answer as a $$ercent rounded to $2$ decimal places, e$.$g$..32\mathrm{.}16.$c$.$ The manufacturing plant has an eight$-$year tax life, and DEI uses stralght$-$ine depreciation. At the end of the project $($e$.$ the end ofYear $5).$ the plant can be scrapped for $$1\mathrm{.}54$ million. What is the aftertax salvage value of this manufacturing plant?Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e$.$g$..1,234,567$d$.$ The company will incur $$2,340,000$ in annual fixed costs The plan is to manufacture $13,400$ RDSS per year and sell them at $$10,800$per machine, the variable production costs are $$10,000$ per RDS What is the annual operating cash flow OCE from this project?Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, e$.$q$..1\mathrm{.}234,567.$a$.$ Time $0$ cash flowe. Calculate the project's net present valueb. Discount rateNote: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to $2$ decimalplaces, e$.$g$..1,234,567\mathrm{.}89$c$.$ Aftertax salvage valuef. Calculate the project's internal rate of return.d$.$ Operating casth flowNote: Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$le$.$ NPV$\%$