Sugarpine Diner needs to purchase equipment for its $1,500$ drive$-$ins nationwide. The total cost of the equipment is $$2\mathrm{.}4$ million. It is estimated that the after$-$

tax cash inflows from the project will be $$245,000$ annually for the foreseeable future. Sugarpine has a market value debt$-$to$-$assets ratio of $40\%.$ The firm's

cost of equity is $13\%,$ its pre$-$tax cost of debt is $8\%,$ and the flotation costs of debt and equity are $2\mathrm{.}5\%$ and $7\%,$ respectively. The tax rate is $30\%.$ Assume the

project is of similar risk to the firm's existing operations. What is the floatation cost for the proposed financing?

Multiple Choice

$$131,646$

$$100,692$

$$98,754$

$$65,825$

$$52,752$

can someone please help me with this managerial finance question thank you