Please do it in the following steps:

1- Calculate WACC (without floatation costs)

2- Calculate NPV based on floatation costs.

A firm has the opportunity to invest in a project that costs $4 million and is expected to generate total cash flows of $350,000 next year that will grow at 2% per year indefinitely. The firm faces a 21% tax rate and has the following financing outstanding: Debt: 8,500 bonds with an annual coupon rate of 5% with a current price quote of 113.65 and 20 years to maturity. Preferred stock: 150,000 shares of 6 percent preferred stock with a current price of $50 and a par value of $100. Common stock: 500,000 shares outstanding, selling for $40 per share. The company will pay a dividend of $2 per share and expects it to grow at 9 percent annually. The firm will have to issue new securities to finance the project. Flotation costs for new common stock are 7 percent, for new preferred stock, 4 percent, and for new debt, 3 percent. Compute the NPV and indicate whether the project should be accepted