ABC is currently at its target debt$-$equity ratio of $0\mathrm{.}70.$ It is considering building a new $$45$ million manufacturing facility. This new plant is expected to generate after$-$tax cash flows of $$6\mathrm{.}2$ million in perpetuity. The company plans to raise all needed funds from outside financing. The financing options are as follows: $1.$ New issue of common stock. The flotation costs of the new common stock would be $8\%$ of the amount raised. The required return on the company's new equity is $14\%.2.$ New issue of $20-$year bonds. The flotation costs of the new bonds would be $4\%$ of the proceeds. If the company issues these new bonds at an annual coupon rate of $8\%,$ they will sell at par Assume that ABC has a $35\%$ tax rate. Evaluate the proposed project. Is the project acceptable?