Suppose a particular project's free cash flows in one year will either be $280,000 (with 60% probability) or $450,000 (40% probability). The initial investment required for the project is $100,000, and the project's cost of capital is 13%. The risk-free interest rate is 4%. Suppose that you borrow $30,000 in financing the project. According to Modigliani and Miller proposition II, what is the firm's equity cost of capital equal to? Select one: O a. 20% O b. 14% O c. 15% O d. 25% O e. 7.5%