EASTMAN’s vice president for strategic planning, together with members from the business team and manufacturing, are exploring the possibility of building a greenfield plant through a joint venture in Brazil. EASTMAN would operate the plant and have a 49% ownership position, but without control. The plant will support a mature business, and the technology to be used is an existing technology already employed by EASTMAN.

No allocated capital or venture capital is used. In anticipation of synergies among the joint owners of the business, it is estimated that 20% of the benefits will result from cost savings, and 80% will result from new revenue. Based on the EASTMAN hurdle rate calculator and a base rate of 9%, what discount rate should be used for this project?