Consider the following information, Sahara Co. is interested in investing in a new project. They currently don't have enough cash on hand to finance this project, but they think they could get a bank loan for 5% per year. They estimate their current cost of equity capital is 11% and that their WACC is 9.6%. If the project is less risk than the average risk of the firm what discount rate should they use when finding the NPV? 5% Some discount rate greater than the WACC 11% Some discount rate less than the WACC 9.6%