6. The R-Bar-Ranch in Montana would like a new mechanized barn, which will require a $600.000 initial cash outlay. The barn is expected to provide after-tax annual cash savings of $90.000 indefinitely (for practical purpose of computation, forever). The ranch, which is incorporated and has a public market for its stock, has a weighted average cost of capital of 14.5%. For this project, Mark O. Witz, the president, intends to provide $200.000 from a new debt issue and another $200.000 from a new issue of common stock. The balance of the financing would be provided internally by retained earnings. The present value the after-tax flotation costs on the debt issue amount to 2% of the total debt raised, whereas flotation costs on the new common stock issue come to 15% of the issue. What is the net present value of the project after allowance for flotation costs? Should the ranch invest in the new barn