Intro Empress Inc. has issued a bond with a face value of $1,000 and an interest rate of 12% to fund a new project. The bond is secured by the cash flows from the project, which will be $950 with a probability of 20% and $1,200 otherwise. Assume risk neutrality. Part 1 - Attempt 2/10 for 9.5 pts. What is the appropriate cost of capital for the project