Miranda Mining Corporation has 14 million shares of common stock outstanding, 900,000 shares of 9 percent preferred stock outstanding ($100 par value), and 220,000 ten percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $42 per share and has a beta of 1.15, the preferred stock currently sells for $80 per share, and the bonds have 17 years to maturity and sell for 91 percent of par ($1,000 par value). The market risk premium is 11.5 percent, T-bills are yielding 7.5 percent, and the firm's tax rate is 21 percent. What discount rate should the firm apply to a new project's cash flows if the project has the same risk as the firm's typical project?

What are flotation costs and how are these costs included in an NPV analysis?

*please show numeric work on excel (preferred) or handwritten.*