4. SebCoe plc, a British firm, is evaluating an investment in a 50 million project that will be financed with 50% debt and 50% equity. Management has already determined that the NPV of this project is 5 million if it uses internally generated equity. However, if the company uses external equity, it will incur. flotation costs of 5.8%. Assuming flotation costs are not tax deductible, estimate the NPV using external equity.

SebCoe plc, a British firm, is evaluating an investment in a 50 million project that will be financed with 50% debt and 50% equity. Management has already determined that the NPV of this project is 5 million if it uses internally generated equity. However, if the company uses external equity, it will incur flotation costs of 5.8%. Assuming flotation costs are not tax deductible, estimate the NPV using external equity