Use the following information to answer the question(s) below. 
The risk-free rate of interest is 3% and the market risk premium is 5%.
-The cost of capital for the oil exploration division is closest to:
Definitions:
Marginal Cost
The amount spent on generating an extra unit of a product or service.
Optimal Amount
The most efficient, effective or desirable quantity or level.
Pollution Abatement
Methods or processes implemented to reduce, control, or eliminate pollution from various sources.
Society's Optimal Amount
The level of production or consumption of a good that maximizes the overall welfare of society, considering both benefits and costs.
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