Your firm is considering a R150 million investment to launch a new product line. The firm is able to obtain a five-year non-amortizable loan at 12% interest rate. The firm will borrow 30% of the amount required for the upfront investment. The remaining funds will be raised through an equity issue. The loan requires flotation costs of 4.7% of the gross proceeds and the firm will pay for these using cash. Flotation costs will be amortized using a straight-line schedule over the five year life of the loan. The corporate tax rate is 30% and the loan will not increase the risk of financial distress for the company. Calculate the flotation costs