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You are considering a project which requires $687,000 in external financing. The flotation cost of equity is 10 % and the flotation cost of debt

You are considering a project which requires $687,000 in external financing. The flotation cost of equity is 10 % and the flotation cost of debt is 6 %. You wish to maintain a debt-equity ratio of.55. What is the initial cost of the project including the flotation costs?

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