You are considering a project that you will finance with only private debt. The project is expected to generate NCFs of $15,000 each year for the next 10 years and the NINV is $100,000. If the NPV is $12,524.03. What is the before-tax cost of the private debt? The tax rate is 35%.

A) 5.60%

B) 6.12%

C) 7.56%

D) 8.62%