APV ( adjusted present value) question strayer

hi sir can you please help me out i am trying to understand the logic behind the APV step 1: is to calculate the base case NPV we assume that the $25 m will be raised through 100% equity finance but when it says to calculate the issue costs it says in the question that issue cost is 4% of the equity finance it only took 10m x 4% = $ 0.40m so we are assuming that the issue cost is included in the equity finance of $10m so we need to remove the issue cost in the $10m and the issue cost in the $5m debt finance because the issue cost will change if we borrow more equity finance why was it not removed if the issue cost was not included you would have calculated it differently ie: 10m x 100/96 = 10.4166m but clearly in the $10m it was included so that means the total amount to be raised via equity finance in the base case NPV cannot be $25m because the issue costs of both the equity and debt finance is included can you please help me out. maybe i am wrongly understanding something thank you very much