Office of Business Administration tells you that Villa Apartment has a project to expand the current operations and the estimated internal rate of return is 12.2%. The Villa Apartment's WACC is 11.8%. Based on all of these, you can safely conclude the:

appropriate discount rate for the project is between 11.8% and 12.2%.

expansion should be undertaken as it has a positive net present value.

project has slightly more risk than the firm's current operations.

project will have a lower debt-equity ratio than the firm's current operations.