Assume a firm$$s flotation costs are $8\mathrm{.}2$ percent of the funding needed. Accordingly, when analyzing capital projects, the firm$$s managers should:

Multiple Choice

add $7\mathrm{.}8$ percent to the company's firm's WACC to determine the discount rate for the project.

increase the project's discount rate to offset these expenses by dividing the company's WACC by $(1\mathrm{.}082).$

increase the initial project cost by multiplying that cost by $1\mathrm{.}082.$

increase the project's discount rate to offset these expenses by multiplying the company's WACC by $1\mathrm{.}082.$

increase the initial project cost by dividing that cost by $(1\mathrm{.}082).$