Question: West Minster Properties is considering a project which has an initial startup cost of $840,000. The firm maintains a debt-equity ratio of 60. The flotation

West Minster Properties is considering a project which has an initial

West Minster Properties is considering a project which has an initial startup cost of $840,000. The firm maintains a debt-equity ratio of 60. The flotation cost of debt is 8% and the flotation cost of equity is 13%. 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? Multiple Choice $872,418 $865,979 $803,104

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