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Use the information for the question(s) below Consider a project with free cash flows in one year of $90,000 in a weak economy or $117,00

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Use the information for the question(s) below Consider a project with free cash flows in one year of $90,000 in a weak economy or $117,00 in a strong economy, investment required for the project is S80 000, and the projecrs cost of capital is 15% The risk-free interest rate is 5% with each oulcome being equally likely The initial Suppose that to raise the funds for the initial investment the firm borrows $40,000 at the risk free rate and issues new equity to cover the remainder. In this situation, the cost of capital for the firm's levered equity is closest to: OA, 25% OB. 18% OC. 15% OD, 23%

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