Your firm is considering a project which requires an initial investment of $2.75 million. Your target D/E ratio is 0.75. Flotation costs for equity are 7.15% and flotation costs for debt are 3.37%. What is the true cost (in dollars) of the project when you consider flotation costs?

A) $2.85 million B) $2.91 million C) $3.32 million D) $3.46 million E) $3.61 million