You Are Considering a Project Which Requires $687,000 in External

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?

A) $642,113
B) $656,008
C) $711,209
D) $751,482
E) $818,406