15. Firm XYZ has the opportunity to invest in Project 123 that is expected to generate the following incremental cash flows: Year Cash Flow $25,000- $40,000 3 $35,000 XYZ's debt is currently selling for $1,081.11, has a 10% coupon to maturity. The firm's common stock has a beta of.8. target (paid semi-annually), and five years . The risk-free rates currently 5% and the debt-equity ratio is 0.60 (the firm has no return on the market portfolio is 12%. The firm's preferred stock). The corporate tax rate is 35%. a) Assuming the firm will not incur what is flotation costs, what is the most XyZ should invest in the project today in order to break even? (8 points answer to part a.), compute the true cost of the project after taking flotation costs into account (5 points b) Now assume XYZ will have to pay flotation costs of 8% for equity and 5% for debt. Using Sour