Pelangi Bhd is planning to invest in a new project that is significantly different from its existing business operations. This company is financed 40% by debt and 60% by equity. It has identified Rainbow Bhd with business operations similar to the proposed investment. Rainbow Bhd has an equity beta of 0.62 and is financed 35% by debt and 65% by equity. Assume that the return from investment in Malaysian Treasury Bills is 5% per year, and that the equity risk premium is 6% per year. Assume also that all the companies pay tax at a rate of 24% per year. Calculate a project-specific discount rate for the proposed investment.