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 detection 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 $7.3 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. If the land were sold today, the net proceeds would be $779 million after taxes. In five years, the land will be worth $8.09 million after taxes. The company wants to build its new manufacturing plant on this land, the plant will cost $13.76 million to build. The following market data on DEI's securities are current Debt: 93,800 7.2 percent coupon bonds outstanding, 26 years to maturity. selling for 93.1 percent of par the bonds have a $1.000 par value each and make semiannual payments. mon stock: 1.860,000 shares outstanding, selling for $95.90 per share the beta is 1.10. Preferred stock 88,000 shares of 6.4 percent preferred stock outstanding. Selling for $93.90 per share. Market 7.15 percent expected market risk premium: 5.1 percent risk-free rate. DE's tax rate is 24 percent. The project requires $920,000 in Initial net working capital Investment to get operational a. Calculate the project's Time O cash flow, taking into account all side effects. Assume that any NWC ralsed does not require floatation costs. (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 riskler than a typical project for DEI. primarily because the plant is being located overseas. Management has told you to use an adjustment factor of +3 percent to account for this increased riskiness Calculate the Am ato ir TATA T 1750 when evaluating Flenniart I Do not round