MTM LtdEarns 10

MTM Ltd.earns 10.25 percent on its current investments after adjusting for inflation.Inflation is expected to average 2.8 percent annually over the next 5 years.What discount rate should the firm assign to a project assuming the project has a life of 5 years and the same level of risk as the firm's current operations?

A) 12.96 percent
B) 13.05 percent
C) 13.14 percent
D) 13.34 percent
E) 12.87 percent