You have recently been hired as a financial advisor for Aura Intelligence, Inc. The company is considering investing in a new camcorder that has improved video quality, battery life, and durability relative to previous editions. Following discussions between the sales and marketing departments, the company has decided to price the new camcorder at $140, including taxes. The company estimates that variable costs for each camcorder are . The sales department estimates that the company can sell 1 million camcorders in the first year of the project's life, and the number of units sold is expected to increase by 1% annually until the project is wrapped up at the end of the tenth year. Further assume that the selling price per camcorder will decrease by 2% per year given the release of newer versions. Variable costs per camcorder are not expected to change. 5 Fixed costs for the project are expected to be $7.5 million per year. Moreover, the company will need to invest a total of $120 million in property, plant, and equipment (PP&E) that will be 100% depreciable on a straight-line basis over the next 10 years. At the end of year 10, the company anticipates that it will sell this equipment for a pre-tax market value of $10 million. Assume that the company is in a 35% corporate tax bracket. The company will also require an additional investment of $15 million in net working capital, and 20% of this investment in net working capital will be recovered at the end of year 10 Analyzing the company's dividend history from its Investor Relations section, you discover that the company just paid an annual dividend of $6.90 per share. The dividend is expected to increase by 40% overthe next three years before theannual growth rate settles to 4 indefinitely. The required return for shareholders is double the pre-tax cost of debt for the bondholders. There are currently 800 million shares of common stock outstanding. The company does not issue preferred stock. an