Flotation Costs and NPV$.$ Photochronograph Corporation $($PC$)$ manufactures time series photographic equipment. It is currently at its target debt$-$equity ratio of $\mathrm{.}40.$ It$$s considering building a new $$60$ million manufacturing facility. This new plant is expected to generate after$-$tax cash flows of $$9\mathrm{.}6$ million a year in perpetuity. The company raises all equity from outside financing. There are three financing options:

$1.$ A new issue of common stock: The flotation costs of the new common stock would be $7$ percent of the amount raised. The required return on the company$$s new equity is $13$ percent.

$2.$ A new issue of $20-$year bonds: The flotation costs of the new bonds would be $2$ percent of the proceeds. If the company issues these new bonds at an annual coupon rate of $6$ percent, they will sell at par.

$3.$ Increased use of accounts payable financing: Because this financing is part of the company$$s ongoing daily business, it has no flotation costs, and the company assigns it a cost that is the same as the overall firm WACC. Management has a target ratio of accounts payable to long$-$term debt of $\mathrm{.}20.$ Assume there is no difference between the pretax and after$-$tax accounts payable cost.

What is the NPV of the new plant? Assume that PC has a $21$ percent tax rate.