Of the five options below, select the one that correctly completes the following sentence: $"$If a company's cost of

capital is $8\%$dots

it should invest in a project from which it expects a $10\%$ return."

the company's cost of equity must be $4\%$ and its cost of debt $12\%."$

all its divisions must always use $8\%$ as the appropriate hurdle rate."

the company's cost of equity must be $12\%$ and its cost of debt $4\%."$

it should invest in a project from which it expects a $5\%$ return."