please answer flowing question using the feedback from a simular question

Davidson Installers wants to purchase $1,246,500 of new equipment in order to lower annual operating costs by $325,000. The equipment will be depreciated straight-line to a zero book value over its 6 -year life, and then sold for $221,200, The company must hold an extra $86,200 of inventory during the project. The company has a target debt-equity ratio of 0.70 . Their cost of equity is 13.7 . and the pretax cost of debt is 6.0. Assume a 21 percent tax rate. Calculate the project's NPV. WACC=% NPV=$ Allowed attempts: 3 Now suppose that Davidson Installers needs to raise external financing in order to punthase the new equipment. The company's flotation cost for equity is 7.70 percent, and 5.75 percent for debt. Calculate the new NPV for the project. Average fotation cost =% NPV= Feedback First, determine the relevant cash flows. CF0 = Capital Spending + Change in Net Working Capital =1,251,300182,200=1433500 Depreciation =51,251,300=250,260 OCF =( Reduced costs )+(1 TaxRate )+ Depreciation * Tax Rate =(390,000)(10.21)+250,26021=360654.60 Final CF =OCF+ Salvage value + Change in Net Working Capital =360654.60+141.200(10.21)+182.200=654402.60 Next, calculate the WACc. WACC =(1+0.5%)115.3%+(1+0.58)0.59.2%(121%)12.35% Lastly, compute NPV NPV=1433500+(1+0.1225)1300054.60++(1+0.1255)50.5440200 Note: for the most accurate answer, use the full value of the WACC (not rounded). Feedback Average flotation cost =(1+0.58)19.30%+(1+0.58)0.584.00%=7.35% New initial cost =(17.35%)1433500=1547294.71 Note: use the full, unrounded value of the flotation costl NPV=1547294.71+(1+0.1235)1360654.60++(1+0.1235)4054402.60 Feedback Average flotation cost =(1+0.58)10%+(1+0.58)0.584.00%=1.47% New initial cost =(11.47%)1433500=1454862.54 Note: use the full, unrounded version of the flotation cost. NPV=1454862.54+(1+0.1235)1360654.60++(1+0.1235)5654402.60