this was all the information i was given

Schweser Satellites Ine. produces satellite earth stations that sell for 395,000 dach. The firrn's fixed costs. Fi are s2 million. 50 earth stations are produced and sold each year. profits total $600,000 pand the firm 9 assets (all equity financed) are sa million. The firm estimates that it canchange its production process adding 52 millon to investrnent and s400.000 to foced operating costs. This change will (1) reduce variable costs per unit by 510 , 0o0 and (2) iricrease output by 22 units. but (3) the sales price on all units will have to be lowered to s80,000 to permit sales of the addichal output. The firm has taxe loss carmy forwards that render its tax rate zero. its cost of equity is 12%, and it uses no debt The data has been coliected in the Microsoft Excel Online file bolow. Open the spreadsheet and perform the raquired analysis to answer the questions below. Open spreadsheet a. What is the incremental profit? 5 To get a rough idea of the project's profitability, what is the projects expected rate of return for the next year (defined as the incremental profit divided by the investment)? Do not round intermediate calculations. Round your answer to two decimal places. Should the firm make the inyestment? b. Would the firmis breakreven point increase or decrease if it made the change? c. Would the neve situation axpose the form to more or less business risk than the old one? 1. The new sifuation would obviously have more business risk than the old one. 11. The new situation would obviously haye less business risk than the old of gud piles