Decker's Is a Chain of Furniture Retail Stores

Decker's is a chain of furniture retail stores.Furniture Fashions is a furniture maker and a supplier to Decker's.Decker's has a beta of 1.38 as compared to Furniture Fashion's beta of 1.12.The risk-free rate of return is 3.5 percent and the market risk premium is 8 percent.What discount rate should Decker's use if it considers a project that involves the manufacturing of furniture?

A) 12.46 percent
B) 12.92 percent
C) 13.50 percent
D) 14.08 percent
E) 14.54 percent