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If the risk of an investment project differs from the overall firm's risk then the:

a) market rate of return should be used as the projects discount rate.

b) projects discount rate must be adjusted based on the risks of the projects cash flows.

c) projects discount rate must be adjusted based on the sources of project financing.

d) average rate used for all prior projects should be used as the new projects discount rate.

e) projects initial cost should be increased/decreased to account for the increase/decrease in risk.