Southern Alliance Company needs to raise $24 million to start a new project and will raise the money by selling new bonds. The company will generate no internal equity for the foreseeable future.

The company has a target capital structure of 60 percent common stock, 9 percent preferred stock, and 31 percent debt.

Flotation costs for issuing new common stock are 8 percent, for new preferred stock, 6 percent, and for new debt, 2 percent.

What is the true initial cost figure Southern should use when evaluating its project? (Do not round your intermediate calculations.)