Question: You are considering a project which requires $ 6 8 7 , 0 0 0 in external financing. The flotation cost of equity is 1

You are considering a project which requires $687,000 in external financing. The flotation cost of equity is 10% and the floatation cost of debt is 6%. You wish to maintain a debt-equity ratio of 0.55. What is the initial cost of the project including the floatation costs?

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