Question: arks) ) ECTION B (50 MARKS] ANSWER ANY THREE (3) QUESTIONS IN THIS SECTION. QUESTION 1 [20 MARKS] Della company is considering a project that

arks) ) ECTION B (50 MARKS] ANSWER ANY THREE (3) QUESTIONS IN THIS SECTION. QUESTION 1 [20 MARKS] Della company is considering a project that will.cost.P1 million. The project will generate after-tax cash flows of P250,000 per year for 7 years. The WACC is 15% and the firm's target D/E ratio is 06. The flotation cost for equity is 5% art e Totation cost for debt is 3%. 06.1 REQUIRED: (16 marks) What is the NPV for the project after adjusting for flotation costs? What are the steps taken when using the subjective method to estimate WACC? (4 marks)

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