URGENT - PLEASE SHOW ALL STEPS AND CALCULATIONS

The Argos Corp is planning to raise $20 million in capital to finance the expansion of their manufacturing plant. The break-up is as follows: 6 million in debt, 4 million in preferred stock and 10 million in common stock.

i) They plan to issue 10 years bonds, paying 10% coupon annually, and expect to receive $1031.40 per $1000 face value. Ignore floatation costs. ii) They plan to issue perpetual preferred stocks and expect to receive $73.62 per face value of $100 paying 12% preferred dividends. Ignore floatation costs. iii) The plan to issue common stock and expect to pay $2.40 in dividends next year (d1) with a forecasted growth rate of 7%. The current market price of the stock is $18.36.

b) After applying the $20 million investment into a project, the company estimated its NPV to be $500,000. However, they forgot to include flotation costs. Assume the flotation costs for issuing debt, preferred stock and common stock are 5%, 3% and 7%, respectively. Should they still accept a project? Explain why or why not?