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Amba Co. Is considering a one-year project that resquires an initial investment of $450,00; however, in raising this capital, Amba will incur an additional flotation
Amba Co. Is considering a one-year project that resquires an initial investment of $450,00; however, in raising this capital, Amba will incur an additional flotation cost of 2.0%. At the end of the year, the project is expected to produce a cash inflow of $550,000. Determine the rate of return that Amba expects to earn on the project after flotation costs are taken into account.
14.9%
19.8%
16.8%
15.8%
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