You are a newly graduated management consultant Looking for an Opportunity and recently Come up with a Job opportunity to work with Incas Company. The company is looking at setting up a manufacturing plant overseas to produce a new line of Products. This will be a five-year project. The company bought some land three years ago for $7.25 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 $7.55 million after taxes. In five years, the land will be worth $7.75 million after taxes. The company wants to build its new manufacturing plant on this land, the plant will cost $17 50 million to build. The following market data on Inca's securities are current: Debt: 84,450 735 percent coupon bonds outstanding, 20 years to maturity, selling for 93.75 percent of par, the bonds have a $1,000 par value each and make semi-annual payments. Common stock: 1660000 shares outstanding, selling for $96.5 per share the beta is 1.45. Preferred stock 86,500 shares of 6.3 percent preferred stock outstanding, selling for $93.5 per share Market: 7.55 percent expected market risk premium, 5.85 percent risk-free rate. Incas tax rate is 30 percent. The project requires $963,500 in initial networking capital investment to get operational. a. Calculate the project's Time 0 cash flow, taking into account all side effects. Assume that any NWC raised 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 project is somewhat riskier than a typical project for Incas, primarily because the plant is being located overseas. Management has told you to use an adjustment factor of +1.5 percent to account for this increased riskiness. Calculate the appropriate discount rate to use when evaluating Inca's project. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. The manufacturing plant has an eight-year tax life, and Incas uses straight-line depreciation. At the end of the project (i.e. the end of Year 5), the plant can be scrapped for $1.588 million. What is the after-tax salvage value of this manufacturing plant? (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 $2,675,000 in annual fixed costs. The plan is to manufacture 12,750 Units per year and sell them at $10,550 per machine, the variable production costs are $9,575 per Unit. What is the annual operating cash flow, OCF, from this project? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, eg, 1,234,567) e Calculate the project's net present value. (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) f. Calculate the project's internal rate of return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32. 16.)