In $2016$ Nike discontinued making golf balls and golf clubs. However, as a result of the COVID $19$ pandemic, golf exploded as one of the most popular sports in America and Titleist, the leading brand in golf balls, has expanded its market share to almost $40\%$ over the past few years. Nike is now considering getting back into the golf ball business, but recognizes that this is no longer a core competency of the company and perhaps a riskier product to sustain than it once was. You are part of the team responsible for evaluating the decision. Your finance team provides you with the following information.

Nike$$s Borrowing Rate $4\mathrm{.}0\%$

Titleist$$s WACC $8\mathrm{.}5\%$

Nike$$s WACC $10\%$

Assuming Nike considers entering the golf ball market again, what would be the appropriate discount rate to use when preparing an NPV analysis? Should Nike consider using a higher discount rate than those provided? Why or why not? Explain your answer