Read the details given below to answer the question 2 and 3 (Marks 2,5 x 2 = 5) The Honda Company would like a new machine, which will require a $850,000 initial cash outlay. The Machine is expected to provide after-tax annual cash savings of $105,000 indefinitely. The Company, which is incorporated and has a public market for its stock, has a weighted average cost of capital of 15.5 percent. For this project, management intends to provide $300,000 from a new debt issue and another $250,000 from a new issue of common stock. The balance of the fmancing would be provided internally by retaining earnings. The present value of the after-tax flotation costs on the debt issue amount to 3 percent of the total debt raised, whereas flotation costs on the new common stock issue come to 5 percent of the issue. 2. What is the net present value of the project after allowance for flotation costs? 3. Should the company invest in the new Machine