What will be the initial outlay for the project

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Reference no: EM131176448

The faraway moving company is in a major plant of expansion that involves the expenditure of $211 million in the coming year.The firm plans on financing the expansion through retension of $140 in firm earning and borrowing the remaining $71 million. In return for helping sell the $71 in new debt, the firm investment banker charges a fee of 250 basis points (where 1 basis point is 0.01 percent). If faraway decides to adjust for these flotation cost by adding them to the initial outlay,what will be the initial outlay for the project ?

Reference no: EM131176448

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