To finance a proposed project, Quantitative Manufacturing (QM) would need to issue $25 million in common equity QM would receive 523 million in net proceeds from the equity ce When analyzing the project, analysts at QM should: Not consider the flotation cost because it is a sunk cost. Allocate the $2 million flotation costs to the future project costs. Add the $2 million flotation cost to the project's initial cash outflow Increase the cost of equity capital to account for the 8% flotation costs