I have attempted this question and when I calculated the PV of the issue costs in the financing part of the APV calculation I took in consideration the fact that the issue costs of debt are tax deductible. However in the given answer there doesn’t appear to be mention of this tax deduction.
Unless the question specifically says that they are or (are not) tax deductible (and it is not made clear in Burung) then you would get the marks for doing either – provided (as always in P4) you state your assumption.