Cal Poly Corporation would like to start a new project: building a high-tech rose float for the next regional contest. This rose float project will require 553,000 in the initial cost. The company is planning to raise this amount of money by selling new corporate bonds and new stocks. It has a target capital structure of 40 percent common stock, and 60 percent debt. Flotation costs for issuing new common stock is 7%, and for new debt it is 4%. C. (a) The true required initial investment that Cal Poly Corporation should use in its valuation of the rose ROSE FLOAT float project is (increase decimal places for any intermediate calculations, from the default 2.0 CONCEPT CONTEST 2020 6 or higher. Only round your final answer.) #1 $55,907 #2 $55,756 #3 $53,000 #4 $50,244 (b) TRUE OR FALSE? The higher the flotation costs, the higher the initial investment that needs to be used in project valuation and so the higher the project's Net Present Value. This statement is 01 TRUE #2 FALSE