Implication of Pecking Order Theory for Financing Projects

ABC Corporation is a mid-sized manufacturing firm that is considering a new project requiring substantial capital investment. The management has discussed various financing options, including issuing new equity, debt financing, or retaining earnings. According to the pecking order theory of capital structure, firms prioritize their sources of financing based on the relative costs and availability. The management is aware of this theory and wants to understand its implications for their project funding.

What is the primary implication of the pecking order theory that ABC Corporation should consider when making financing decisions for their new project?