Southern Imports Is an All-Equity Firm with a Beta of 1.32.The

Southern Imports is an all-equity firm with a beta of 1.32.The firm is considering a new project that entails less risk than its current operations and thus management feels that the firm's beta should be lowered by .18 when assigning a discount rate to this project.The market rate of return is 9.4 percent and the risk-free rate is 2.8 percent.What discount rate should be assigned to this project?

A) 11.46 percent
B) 11.21 percent
C) 10.87 percent
D) 6.49 percent
E) 10.32 percent