Alex Company is planning to invest in a project. The following information is provided: Initial cash outflow = $75,000 Expected future cash flows = $20,000 every year for the next 5 years Alexs before-tax cost of debt = 5% Tax rate = 30% Next years expected dividend = $1 per share Current price of the stock = $25 Expected growth rate = 4% Target capital structure = 70% equity and 30% debt Flotation costs for equity = 4%

Calculate the NPV of the project after adjusting cash flows to account for flotation costs.