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Part C: Solve the following question (22 points) A new electrical components manufacturing company is preparing its business plan to generate money. The company is to start in 2020 gaining the cross revenue from selling electrical switches with a price equal to $10/unit. The company decides that the price of this switch is expected to remain unchanged during 2021 and 2022 Other financial information are as follows: - In 2019, a survey shows that the market of the electrical switches was Si billion. Also the company projects its market share to be 10% from the market size in all years. However, The market size growth 10%, 20%, and 20% in 2020 2021, and 2022 respectively In all years, the labor cost per unit is 15% of the unit price, the manufacturing overhead per unit is 50% of the labor cost, and the material costs are $2.75/unit - In 2020, space rent is $5 Million, salaries are $ 15 Million and other operating expenses are S 34 million. These costs are expected to increase 10% each year from previous year. Knowing that the company is to buy an equipment at the beginning of 2020, with zero market value and 6 years straight line deprecation model Answer the following: 1- Complete the financial projection statement for the company in the table below. 2020 2021 2022 Year Market size in millions $ Gross revenue in millions $ Demand in million units Manufacturing cost in millions $ Gross profit in millions $ Depreciation in millions $ Operating expenses in million $ (excluding the depreciation) Net profit before tax in millions $ Tax (5%) Net profit in millions $ 2- If the gross revenues as given above are not applicable and assuming uniform annual gross revenue over the three years, based on the given rest of data, estimate the required annual gross revenue that will bring the IRR of this project to 8%

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