Suppose you have been hired as a financlal consultant to Defense Electronics, Incorporated (DEI), a large, publicly traded firm that is the market share leader in radar detection systems (ROSs). The compary 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 $7,3 mililon 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 $7.8 millon after taxes. In five years, the land will be worth $8.1 million after taxes. The company wants to bulld its new manufacturing plant on this land; the plant will cost $13.8 million to bulld. The following market data on DEr's securities are current DEI's tax rate is 25 percent. The project requires $925,000 in initial net working capital investment to get operationat. a. Calcuiate the project's Time O cash flow, taking into account all side effects. Assume that any NwC ralsed does not require fiostation costs. Note: A negative answer should be indicated by a minus sign. Do not round Intermediate calculations and enter your answer in dollars, not mittions of dollars, e.g., 1,234,567. b. The new RDS projoct is somewhat riskier than a typical project for DEL, primarly because the plant is being located overseas. Management has told you to use an adjustment factor of +2 percent to account for this increased riskiness. Calculate the oppropriate discount rate to use whon evaluoting DEl's project. Note: Do not round Intermedlate caleulations and enter your answer as o percent rounded to 2 declmal places, e, 9.32 .16 \). c. The manufacturing plant has an elght-year tax Me, and DEi uses straight-line deprociation. At the end af the project (f.e., the end of Year 5 ), the plant can be scrapped for $17 miltion. What is the aftertax salvage value of this manufacturing plant? Notet Do not round intermediate calculations and enter your answer in dollars, not millons of dollars, e.9., 1,234,567. d. The company will incur $2,500,000 in annual foced costs. The plan is to manufacture 15,000 RD5s por yeor and sell them at $12,400 per machine; the variable production conts are $11,600 per RDS. What is the annual operating cash flow, OCF, from this project? Notet Do not round Intermediate calcutations and enter your answer in doliars, not millions of dollars, e.9, 1,234,567. e. Calculate the projects net present value. Notes Do not round Intermediate calculations and enter your answer in dollars, not millions of dellars, rounded to 2 decimal places, 0.9,4,234,567,89 1. Calculate the project's internal rate of return. Note: Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e-g., 32.16. \begin{tabular}{|l|l|l|} \hline a. Time 0 cash flow & & \\ \hline b. Discount rate & & \\ \hline c. Aftertax salvage value & & \\ \hline d. Operating cash flow & & \\ \hline C. NPV & & \\ \hline f. IRR & & \\ \hline \end{tabular}