1. Black Pearl Yachts is considering a project that requires a $180,000 cash outlay and is expected to produce cash flows of $50,000 per year for the next five years. Black Pearl's tax rate is 25%, and the before-tax cost of debt is 8%. The current share price for Black Pearl's stock is $56 and the expected dividend next year is $2.80 per share. Black Pearl's expected growth rate is 5%. Assume that Black Pearl finances the project with 60% equity and 40% debt, and the flotation cost for equity is 4.0%. The appropriate discount rate is the weighted average cost of capital (WACC). Which of the following choices is closest to the dollar amount of the flotation costs and the NPV for the project, assuming that flotation costs are accounted for properly?
　　Dollar amount of flotation costs　　　NPV of Project