Problem 14-30 Flotation Costs and NPV (LO4,7) Retlaw Corporation (RC) manufactures time series photographic equipment. It is currently at its target debt-equity ratio of 087 It's considering building a new $58 million manufacturing facility. This new plant is expected to generate after-tax cash flows of $89 million in perpetuity The company raises all equity from outside financing There are three financing options 1 A new assue of common stock The flotation costs of the new common stock would be 11% of the amount raised. The required return on the company's new equity is 17% 2. A new issue of 20 war bonds. The flotation costs of the new bonds would be 4% of the proceeds if the company issues these sew bonds at an annual coupon rate of 8.0%, they will sell at por 3. Increased use of accounts payabile financing Because this financing is part of the company's ongoing daily business, it has no Totation costs and the company assigns it a cost that is the same as the overall firm WACC Management has a target ratio of occounts payable to long-term dobt of 0140 (Assume there is no difference between the pre-tax and after tax accounts payable cost) What is the NPV of the new plant? Assume that RC has a 40% 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 $ sign in your response.) NPV