Given firms plansnbsp what must the initial outlay for

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A company recently borrowed $16 million from a group of banks and agreed to pay 8.4% interest before considering taxes of 34%. The banks also charged the firm a fee of 2.7% of the issue to make all the arrangements. The firm plans to invest $30 million in a new distribution facility and will finance the remainder using cash from prior years retained earnings. Given the firm's plans,  what should the initial outlay  for the plant expansion be if flotation costs are accounted for by adjusting the initial outlay.

Reference no: EM13476349

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