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You are considering a project which requires $128,210 in external financing. The flotation cost of debt is 4.5 % and the flotation cost of equity

You are considering a project which requires $128,210 in external financing. The flotation cost of debt is 4.5 % and the flotation cost of equity is 11 %. You wish to maintain a debt-equity ratio of 1.50. What is the initial cost of the project including the flotation costs? Ignore taxes and assume there are no internally generated funds available.

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