Bob's Burgers is considering renovating their restaurants and adding salad bars. The company believes that it will need to finance the project externally. Incorporating flotation costs into the analysis of the project will:

A. Increase the initial cash outflow of the project.

B. Increase the net present value of the project.

C. Have no effect on the present value of the project.

D. Cause the project to be improperly evaluated.

E. Increase the project's rate of return.