Titan Mining Corporation has 9 million shares of common stock outstanding, 250,000 shares of preferred stock with 6% return, and 105,000 7.5% semiannual bonds outstanding. The common stock currently sells for $34 per share and has a beta of 1.25, the preferred stock currently sells for $91 per share, and bonds have 15 years to maturity and sell for $930. The market risk premium is 8.5%, T-bills are yielding 5%, and Titan Minings tax rate is 35%.

The floatation costs for issuing debt, preferred stock and common stock are 4%, 2% and 3%, respectively. The firm plans to maintain the same capital structure. How will the firm incorporate the calculated flotation costs in the capital budgeting analysis? What is the new NPV?