40. Suppose that Alpha S.A., the French subsidiary of a U.S.-based multinational. The company finance a new foreign project with 30% debt and 70% equity. Alpha S.A. borrows 10million for one year at an after-tax interest rate of 7%. After one year, the euro has depreciated 4.08% with respect to the US $. Alpha S.A. knows that the beta for the foreign project is 1.01, the return on the global market portfolio is 11% and the risk-free rate is 3%. What is the cost of capital of this foreign project