Question: 6. Lucron Corp. is considering a project that will cost $3 10, 000 and will generate after-tax cash flows of $96, 000 per year for

6. Lucron Corp. is considering a project that will cost $3

6. Lucron Corp. is considering a project that will cost $3 10, 000 and will generate after-tax cash flows of $96, 000 per year for 5 years . The firm's WACC is 12% and its target D / E ratio is 2/3 . The flotation cost for debt is 4% and the flotation cost for equity is 8% . What would be the new cost of the project after adjusting for flotation costs ? A ) $328 , 390 B ) $329, 787 ( ) $3 31, 197 D ) $329, 840 E ) $290. 160

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