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For a levered firm, flotation costs should be ignored when analyzing a project because they are not an actual project cost. be spread over the
For a levered firm, flotation costs should
be ignored when analyzing a project because they are not an actual project cost. | ||
be spread over the life of a project, thereby reducing the cash flows for each year of the project. | ||
only be considered when two projects are mutually exclusive. | ||
be weighted and included in the initial cash flow. | ||
be totally ignored when internal equity funding is utilized. |
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