Your Company needs to purchase new machine to meet the demand for its product. The cost of the equipment is $310,000. It is estimated that the firm will increase operating cash flow (OCF) by $38,000 annually for the next seven years. The firm is financed with 40% debt and 60% equity, both based on market values. The firm's cost of equity is 8% and its pre-tax cost of debt is 6%. The flotation costs of debt and equity are 4% and 6%, respectively. Assume the firm's tax rate is 30%. (Mark 40, 8 for each sub-question) (A) What is the firm's WACC? (B) Ignoring flotation costs, what is the NPV of the proposed project? (C) What is the weighted average flotation cost, f_A, for the firm? (D) What is the dollar flotation cost of the proposed financing? (E) After considering flotation costs, what is the NPV of the proposed project?