WeCare HMO is evaluating a new project. It has a coefficient of variation (CV) of 5, while the HMO's average project has a CV of 2-3.

WeCare HMO is evaluating a new project. It has a coefficient of variation (CV) of 5, while the HMO's average project has a CV of 2-3. The business's corporate cost of capital is 10 percent and the typical adjustment for project risk is 3 percentage points. What is the project cost of capital?

a. 7% b. 10% c. 13% d. 16% e. 19%