18. Flotation costs and NPV (L017.3, L017.4] A new plant under consideration by Maykit Corporation is expected to generate after-tax cash flows of $10 million per year forever. Maykit manufactures portable housing components. It is currently at its target.debt/equity ratio of 0.5. It is considering building a new $50 million manufacturing facility. There are two financing options: a. A new issue of ordinary shares. The flotation costs of the new share issue would be about 15 per cent of the amount raised. The required return on the company's new equity is 19 per cent. b. A new issue of 30-year notes. The flotation costs of the new debt would be 3 per cent of the proceeds. The company can raise new debt at 8 per cent. What is the NPV of the new plant? Assume a 30 per cent tax rate