A firm has a capital structure that is 40% debt and 60% equity. The management wished to enter into a project that requires a capital outlay of $4,000,000. The firm's flotation cost of equity is 7.25% and flotation cost of debt is 2.75%. how much will the firm have to pay out in flotation costs if they accept the project and maintain their current capital structure?

A. $230,566 B. $2,356,021 C. $279,831 D. $2,973,856 E. $1,561,021