Flotation Costs Should

Flotation costs should:

A) Be ignored when analyzing a project because they are not an actual cost of the project.
B) Be averaged over the life of the project thereby reducing the cash flows for each year of the project.
C) Only be considered when two projects have the same net present value.
D) Be subtracted from the initial cost of a project before the net present value of the project is computed.
E) Be included in project analysis as an additional initial cost of the project.