Marginal Cost of Capital Calculation

A company has a weighted average cost of capital (WACC) of 8%. It is currently considering a new project that requires an investment of $1,000,000. The company plans to finance the project through debt and equity, targeting a debt-to-equity ratio of 1:1. The cost of debt is currently 5%, and the expected return on equity is 12%. The company estimates that as it raises more capital, the cost of additional equity might rise due to perceived risk from investors. Based on this information, what would be the marginal cost of capital to finance this project?