1. Harmon, Inc. has a debt-equity ratio of .80. The firm is analyzing a new project which requires an initial cash outlay of $300,000 for new equipment. The flotation cost for new equity is 9 percent and for debt 4.5 percent. What is the initial cost of the project including the flotation costs?

   $317,125

   $320,856

   $321,000

   $322,581

   $325,912