Gold Alliance Company needs to raise $45 million to start a new project and will raise the money by selling new bonds. The company will generate no internal equity for the foreseeable future. The company has a target capital structure of 65% common stock, 5% preferred stock, and 30% debt. Flotation costs for issuing new common stock are 9%, for new preferred stock, 6 %, and for new debt, 3%.

What is the initial cost figure Gold should use when evaluating its project?