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RiverRocks realizes that it will have to raise the financing for the acquisition of Raft Adventures (described in Problems 20 and 21) by issuing new

RiverRocks realizes that it will have to raise the financing for the acquisition of Raft Adventures (described in Problems 20 and 21) by issuing new debt and equity. River-Rocks estimates that the direct issuing costs will amount to $7 million. How should it account for these costs in evaluating the project? Should RiverRocks go ahead with the project?

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