You are asked to use the CAPM to calculate the cost of equity for a company for use in project valuation. Assume that the project is roughly the same risk and duration as the company's existing projects, building construction projects making revenues from long-term lease contracts over several decades.

The annualized yield on 30-day treasury bills: 2.5%

The annualized yield on 30-year treasury bonds: 3%

The average market return from 1927-today: 11.6%

The forward looking market risk premium: 4%

Sample covariance of company stock with S&P500: 0.3

Sample variance of S&P500: 0.5

What is the cost of equity for the project according to the CAPM?

(Note that you don't necessarily need to use all of the data presented.)