Problem 14-30 Flotation Costs and NPV (L04,7) Hetlaw Corporation (RC) manufactures time series photographic equipment. It is currently at its target debt equity ratio of 0.87. It's considering building a new $57 million manufacturing facility. This new plant is expected to generate after-tax cash flows of $9.4 million in perpetuity. The company rates all equity from outside financing. There are three financing options: A new issue of common stock The flotation costs of the new common stock would be 9% of the amount raised. The required return 2. A new issue of 20 year bonds: The flotation costs of the new bonds would be 4% of the proceeds. If the company issues these new bonds at an annual coupon rate of 80%, they will sell at par. 7 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 0.175. (Assume there is no difference between the pre-tax and after-tax accounts payable cott What is the NPV of the new plant? Assume that RC has a 35% tax rate. (Enter the answer in dollars. Do not round intermediate calculations. Round the WACC percentage to 2 decimal places. Round the final answer to 2 decimal places. Omit S sign in your response NPV