BHP company is planning to buy a new iron ore mine to expand its production. 40% of the capital is contributed by equity holders. If shareholder's required rate of return is 12% p.a. and the creditors charge 8% p.a. interest, What is the minimum required rate of return of this project?

A.

7.2%

B.

8.8%

C.

9.6%

D.

Not able to decide as the creditors' contribution to the capital is not given