When a firm has flotation costs equal to $6\mathrm{.}8$ percent of the funding need, project analysts should:

Question $1$ options:

Increase the project's discount rate to offset these expenses by multiplying the firm's WACC by $1\mathrm{.}068.$

Increase the project's discount rate to offset these expenses by dividing the firm's WACC by $(1-\mathrm{.}068).$

Add $6\mathrm{.}8$ percent to the firm's WACC to determine the discount rate for the project.

Increase the initial project cost by multiplying that cost by $1\mathrm{.}068.$

Increase the initial project cost by dividing that cost by $(1-\mathrm{.}068).$