Flow Yoga Studio has a project with free cash flows in one year of $115,000 in a weak economy or $172,500 in a strong economy, with each outcome being equally likely. The initial investment required for the project is $80,000, and the project's cost of capital is 15%. The risk-free interest rate is 5%. Suppose that you borrow only $62,500 in financing the project. According to MM proposition II, the firm's equity cost of capital is closest to: Question options: 15% 18% 25% 29% T