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Yesteryear Productions is considering a project with an initial start-up cost of $960,000. The firm is levered with debt representing ? of its total value, and has a flotation cost of debt of 6.8 percent and a floatation cost of equity of 11.4 percent. The firm has sufficient internally generated equity (i.e. cash) to cover the equity cost of this project. What is the initial cost of the project including the flotation costs?

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Financial Management, Finance

Category:- Financial Management
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