Project after taking flotation costs into consideration

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Reference no: EM131551031

Amber Company is considering a one - year project that requires an initial investment of $500,000. However, to raise this capital, the company will incur flotation costs that are 2% of the initial investment amount. At the end of the year, the project is expected to produce a cash inflow of $574,000. What is the rate of return that the company expects to earn on this project after taking flotation costs into consideration?

Reference no: EM131551031

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