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A firm has two divisions and an overall WACC of 10%. Safe Divion has a WACC of 6%. Risky Division has a WACC of 16%.

A firm has two divisions and an overall WACC of 10%. Safe Divion has a WACC of 6%. Risky Division has a WACC of 16%. Safe Division as a new project that is similar to their usual projects. What rate should the use when evluating the new project?

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