- Hartley, Inc. needs to purchase equipment for its 2,000 drive-ins nationwide. The total cost of the equipment is $2,000,000. It is estimated that the after-tax cash inflows from the project will be $710,000 annually for five years. Hartley has a market value debt-to-assets ratio of 40%. The firm's cost of equity is 13%, its pre-tax cost of debt is 8%, and the flotation costs of debt and equity are 2% and 8%, respectively. The tax rate is 34%. Assume the project is of similar risk to the firm's existing operations. Based on the given information, a) what is Hartley's weighted average cost of capital? b) what is Hartley's weighted average floatation costs? c) What is the NPV for the project after adjusting for flotation costs?