Question: You are evaluating a project which requires 4 5 0 , 0 0 0 in external financing. The flotation cost of equity is 1 0

You are evaluating a project which requires 450,000 in external financing. The flotation cost of equity is 10.8% and the flotation cost of debt is 7.3%. What is the initial cost of the project including the flotation costs if you maintain a debt-equity ratio of 0.6?

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