A firm faces direct costs of 3% of the amount of cash raised in financing a new project. How much needs to be raised if the firm's cash requirement is $6,000,000?

Name: A firm faces direct costs of 3% of the amount of cash raised in financing a new project. How much needs to be raised if the firm's cash requirement is $6,000,000?
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Direct costs = 3% of the amount of cash raisedAmount of cash raised = Cash requirement / (1 - Direct costs)= $6,000,000 / (1 - 0.03)= $6,185,567

A Firm Faces Direct Costs of 3% of the Amount