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Photochronograph Corporation (PC) manufactures time seriesphotographic equipment. It is currently at its target debt-equityratio of .60. It’s considering building a new $65 millionmanufacturing facility. This new plant is expected to generateaftertax cash flows of $9.4 million in perpetuity. The companyraises all equity from outside financing. There are three financingoptions:1.A new issue of common stock: The flotation costs of thenew common stock would be 8 percent of the amount raised. Therequired return on the company’s new equity is 14 percent.2.A new issue of 20-year bonds: The flotation costs ofthe new bonds would be 4 percent of the proceeds. If the companyissues these new bonds at an annual coupon rate of 8 percent, theywill sell at par.3.Increased use of accounts payable financing: Becausethis financing is part of the company’s ongoing daily business, ithas no flotation costs, and the company assigns it a cost that isthe same as the overall firm WACC. Management has a target ratio ofaccounts payable to long-term debt of .15. (Assume there is nodifference between the pretax and aftertax accounts payablecost.)What is the NPV of the new plant? Assume that PC has a21 percent tax rate.