Suppose you have been hired as a finandal consultant to Defense Electrontes, Incorporated $($DE$),$ alarge, publtcy traded firm that ts The maiketshare leader in redar detection systems $($RDSs$).$ The company is looking at seting up a manubecturing plant overseas to produce a new line of RDS$.$ This will be a five$-$year project. The company bought some land three years ago for $$7\mathrm{.}2$ million. If the land were sold today, the net proceeds would be $$7\mathrm{.}73$ million after taxes. In five years, the land will be worth $$8\mathrm{.}03$ million atiter taxes. The company wants to bulid its new manufactuing plant on this land; the plant will cost $$13\mathrm{.}52$ million to bulld. The following maket data on DEIs securites are current:

$\backslash$table$[[$Debts$,\backslash$table$[[92,6$e$07\mathrm{.}1$ percent coupon bonds outstanding, $25$ years to$],[$maturity$,$ setling for $93\mathrm{.}7$ percent of part the bonds have a$],[$s$1,0$eo par value each and make sentannal navmente.$]]],[\backslash$table$[[$Colmon stocks$],[$Rreferred stockt$]],],[,$setling for $993\mathrm{.}30$ per share.$],[$Narkets$,\backslash$table$[[6\mathrm{.}8$ percent expected market risk premiumy $5\mathrm{.}15$ percent risk$-$free$],[$rate$.]]]]$

DERs tax rate is $23$ percent. The project requires $$890,000$ in inilial net working capital investment to get operational.

a$.$ Calculate the project's Time $0$ cash flow, taking into account all side effects. Assume that any WWC ralised does not require floatation costs.

Note: 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$.,1,234,567.$

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 the appropriate discount rate to use when evaluating DEr's project.

Notes Do not round intermedlate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

C$.$ The manufacturing plant has an elight$-$year tax life, and DEI uses straight$-$line depreclatton. At the end of the project $($le$.,$ the end of Year $5),$ the plant can be scrapped for $$1\mathrm{.}63$ 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$\mathrm{.}9.,1,234,567.$

$4.$ The company will incur $$2,430,000$ in annual fixed costs. The plan is to manufacture $14,300$ RDSs per year and sell them at $54700$ per machines the varlable production costs are $$10,900$ per RDS$.$ What is the annual operating cash now, OCFr from this profect?

Notes Do not round intermedlate calculations and enter your answer in dollars, not millions of dollars, e$.$g$.,1,234,56\%.$

e$.$ Calcilate the project's net present value.

Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to $2$ decimal places, e$.$g$.,1,234,567,89$

Calcilate the profect's Intemal rate of return.

Nlotes Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, eg$.,32a6.$