Decker's is an all-equity financed chain of retail furniture stores. Furniture Fashions, a furniture maker, is the primary supplier to Decker's. Decker's has a beta of 1.35 as compared to Furniture Fashion's beta of 1.22. The risk-free rate of return is 2.0 percent and the market risk premium is 6.0 percent. What discount rate should Decker's use if it considers a project that involves the manufacturing of furniture?