Problem $13-10$ Company versus Project Discount Rates $($LO$2)$

Geothermal's WACC is $12\mathrm{.}3\%.$ Executive Fruit's WACC is $13\mathrm{.}2\%.$ Now Executive Fruit is considering an investment in geothermal power

production.

a$.$ Should it discount project cash flows at $13\mathrm{.}2\%?$

Yes

No

b$.$ What would be a better discount rate for this investment? $($Enter your answer as a percent rounded to $1$ decimal place.$)$

$\%$