You are working for Cray Inc., a consumer product company that derives all of its revenues in the United States, is all equity funded and has a cost of equity (and capital) in US$ of 9.2%. (The risk free rate in US$ is 3% and the equity risk premium for the US is 5%). Cray is considering expanding its operations into Indonesia, staying with its policy of using only equity to fund itself. If the equity risk premium for Indonesia is 8%, what is the US$ cost of capital to use to assess this investment?

		9.2%
		9.6%
		11.2%
		12.6%
		None of the above