Two companies are considering the same project. The estimated beta for the project is 0.72 and the expected return on the S&P 500 is 8.7% the YTM on T-bills is 1.6%. The first company is a private company that has no debt outstanding. The second company took out a $3,000,000 bank loan 3 years ago and still has $2,000,000 outstanding on the loan. a)Compute the cost of capital for the project