Mustard Patch Doll Company needs to purchase new plastic moulding machines to meet the demand for its product. The cost of the equipment is $100000. It is estimated that the firm will generate after tax operating cash flow (OCF) of $22000 per year for the next seven years. The firm is financed with 40% debt and 60% equity both based on market values. The firms cost of equity is 16% and its pre-tax cost of debt is 8%. The flotation costs of debt and equity are 2% and 8% respectively. Assume the firms tax rate is 34% and ignore the effects of CCA depreciation. (10 marks) a. What is the firms tax adjusted WACC? b. Ignoring flotation costs what is the NPV of the proposed project? c. What is the weighted average flotation cost fA for the firm? d. What is the dollar flotation cost of the proposed financing? e. After considering flotation costs what is the NPV of the proposed project?