Question $19$: Jensen Shipping is considering a project that has an initial cost of $$211,000.$ The project

will produce aftertax cash flows of $$52,500$ a year forever. The firm's WACC is $16\mathrm{.}5$

percent and its tax rate is $32$ percent. Equity has a flotation cost of $6\mathrm{.}2$ percent while the

flotation cost for debt is $5\mathrm{.}3$ percent. What is the net present value of this project,

including the flotation costs, if the firm's debt$-$equity ratio is $\mathrm{.}5?($Rounded$)$

Multiple Choice

$$79,136$

$$88,549$

$$93,952$

$$73,136$