Practice problem $1$:

If a project is expected to cost $$10$M and fa $=8\%,$ then how much more do we need to actually raise in order to net $$10$M$?($$$10\mathrm{.}87$M$)$

Practice problem $2$: $($refer to practice problem $1)$

Suppose the project is expected to generate $$1\mathrm{.}20$M per year for ever and the WACC is $10\%,$ calculate the NPV without the flotation costs and with the flotation costs. $($ $$2\mathrm{.}0$M$,$ $$1\mathrm{.}13$M$)$