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West Minster Properties is considering a project which has an initial startup cost of $840,000. The firm maintains a debt-equity ratio of 60. The flotation

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West Minster Properties is considering a project which has an initial startup cost of $840,000. The firm maintains a debt-equity ratio of 60. The flotation cost of debt is 8 % and the flotation cost of equity is 13 %. The firm has sufficient internally generated equity to cover the equity cost of this project. What is the initial cost of the project including the flotation costs? Multiple Choice $865,979 $876,082

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