Answer:

E. SpaceI has been awarded a contract to build a next generation rocket for NASA. NASA will pay Space}! $640,0 per year for 13 years {beginning next year] as progress payments. NASA will also pay Space): milestone payments of Ssoaoooo at the halfway point [after 9 yea rs}, and SiEQIII after completion, with 2 years delay making sure everything works properly [after 20 years}. Space): will need to make an initial investment of $?,D, and will also have costs of $15!], per year, for 18 years, to cover labor and materials. Spacers annual WACC is 13%. What is the NF"I.IIr of the contract for Space}? Should they accept the contract? M