Your company is considering a $$1,000,000$ capital project that will generate an after$-$tax cash flow of $$250,000$ for each year of the project$$s $7-$year lifespan. The weighted average cost of capital is $15\%.$ The floatation cost for equity is $5\%$ and for debt is $3\%.$ The company$$s target D$/$E ratio is $0\mathrm{.}6.$ Calculate the following returns:

$1.$ Weighted average floatation cost : $4\mathrm{.}2($Correct$)$

$2.$ True cost of the project $($$$)$: $1042500($Incorrect$)$

$3.$ NPV $($$$)$: $-2395\mathrm{.}07($Incorrect$)$

Answer $2$ and $3$