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ANSWERS ARE BELLOW Question 2 Chris' Chai Tea Brewers has a debt-equity ratio of 0.74. The firm is analyzing a new project, which requires an

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Question 2

Chris' Chai Tea Brewers has a debt-equity ratio of 0.74. The firm is analyzing a new project, which requires an initial cash outlay of $343,500 for equipment. The flotation cost is 8.6 percent for equity and 4.4 percent for debt. What is the initial cost of the project including the flotation costs?

$302,402

$368,616

$455,738

$489,744

$533,333

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