Iowa Grain is considering a project outside of its current line of business. The project would cost $500,000 and would generate positive cash flow of $60,000 next year which would grow at 4% per year indefinitely. Since the project is outside the current line of business, managers at Iowa Grain are finding it difficult to agree on the appropriate risk-adjusted discount rate to use in valuing the project. What is the highest discount rate that could be used for the project before it would appear unprofitable? [Hint: IRR]