Powercat Paints is considering adding ladders to their stores, which is a product they haven't sold before. To help decide if this will be profitable, the firm has decided to use the cost of capital of a similar ladder store as the discount rate to evaluate this project. Which one of the following terms describes this evaluation approach?

Powercat Paints is considering adding ladders to their stores, which is a product they haven't sold before. To help decide if this will be profitable, the firm has decided to use the cost of capital of a similar ladder store as the discount rate to evaluate this project. Which one of the following terms describes this evaluation approach? Multiple Choice Pure play approach Aftertax approach Subjective approach O Equity approach Market play O