Question: A company is considering a project which has an initial startup cost of $710578. The firm maintains a debt to equity ratio of 0.71. The

A company is considering a project which has an initial startup cost of $710578. The firm maintains a debt to equity ratio of 0.71. The flotation cost of debt is 5.33% and the flotation cost of external equity is 9.51%. The firm has sufficient internally generated equity to cover the equity cost of this project. What is the initial cost of the project including the flotation costs?

a $689988

b $708146

c $726303

d $744461

e $762619

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