Panorama Corporation intends to invest in a new project. The investment cost is expected to be $25.4 million and will return $8.75 million for 5 years in net cash flows. The ratio of debt to equity (D/E) is 1.40. The cost of equity is 15.3%, the pretax cost of debt is 7.5%, and the tax rate is 25%. What is the appropriate discount rate? (Hint: Use the D/E ratio to calculate the weights of debt and equity)

		9.45%
		9.66%
		9.88%
		10.05%
		10.27%