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Can I get the detailed answers to the following question?

Can I get the detailed answers to the following question?

Cradle Print Ltd is a Singapore listed company.  Currently, its target debt-equity ratio is 1.  It is considering building a new $500,000 plant in Kallang Indsutrial Park.  This new plant is expected to generate after-tax cash flows of $73,150 per year perpetually.  The tax rate is 17%.  There are 2 financing options:

-  A $600,000 new issue of common stock.  The issuance costs of the new common stock would be about 10% of the amount raised.  The cost of equity is 20%/.

- A $600,000 issue of 20-year bonds. The issuance costs of the new debt would be 2% of the proceeds.  The company can raise new debt at 10%.

(a) Compute the Weighted Average Cost of Capital for Cradle Print Ltd.

(b) Compute the NPV of the new printing plant:

(I) without flotation costs and

(ii) with flotation costs?

Will Cradle Print Ltd accept the new printing plant project in either cases?

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