Alpha, Incorporated, has an overall cost of capital of 11.6 percent and a beta of 1.31. The firm is contemplating a new project that is unrelated to the firm's current operations. Omega Corporation is a firm that operates in the same business as Alpha's new project. Omega has a cost of capital of 10.7 percent. Alpha knows that it will be less efficient than Omega and thus feels that an adjustment of +1 percentage point should be added to the project's discount rate to allow for this inefficiency. What discount rate should be assigned by Alpha to the new project?