Northeast Realtors Has a Beta of 1

Northeast Realtors has a beta of 1.21 and a cost of equity of 14.2 percent. The risk-free rate of return is 4.25 percent. The firm is considering a project with a beta of 1.1 and a project life of 8 years. An
Appropriate discount rate for the project is _____ percent.

A) 8.22
B) 11.81
C) 12.64
D) 13.30
E) 14.20