Canyon Buff Corp. is planning to invest in a new medicine for diabetes. Amarillo Growth Inc. is an all-equity financed firm that specializes in this business. Suppose Amarillo Growths equity beta is 0.75, the risk-free rate is 2%, and the expected market risk premium is 6%. If your firm's project is all equity financed, then your estimate of the projects cost of capital is closest to:

A.5.25%

B.6.00%

C.6.75%

D.7.50%