calculate the npv and the floatation costs for question b and c

b) Over the last two years, Atlantic industries incurred a cost of $50,000 for conducting a feasibility study on a new project. The project requires purchasing a new machine that will cost $1,500,000 plus an additional $300,000 in installation costs. Management estimates that the firm will obtain annual operating revenues before taxes of $1,250,000 and incur annual operating expenses before taxes of $250,000 over the economic life of the project. The specifications of this machine indicate an economic life of five years and management estimates that at the end of the economic life, the machine will have a salvage value of $350,000. This machine is in asset class 8 , which has a CCA rate of 20%. The asset class is expected to remain open at the end of the project. Finally, management expects to make an initial investment in working capital of $500,000, which will be recovered at the end of the economic life of the project. The initial investment in working capital is part of the capital that needs to be raised. Flotation cost to issue new debt is 4%, new preferred share is 5%, and new common share is 7%. This project will have the same level of risk as the firm. c) Now, assume that the firm has only $200,000 in internally generated funds