Flotation Costs and NPV Photochronograph Corporation (PC), who manufacturers time series photographic equipment, is currently at its target...

Flotation Costs and NPVPhotochronograph Corporation (PC), who manufacturers time series photographic equipment, is currently at its target debt-equity ratio of .70. It’s considering building a new $45 million manufacturing facility, which is expected to generate aftertax cash flows of $6.2 million in perpetuity. The company raises all equity from outside financing. There are three financing options:1.