O Use the information for the question(s) below. Consider a project with free cash flows in one year of 590,000 in a weak economy or $117.000 in a strong economy, with each outcome being equally likely. The initial investment required for the project is $80.000 and the project's cost of capital is 15%. The risk - free interest rate is 5% Suppose that you borrow $60,000 in financing the project. According to MM proposition II the firm's equity cost of capital will be closest to N BHA 25 B. 35% 45% OD. 30%