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Project XYZ is moderately risky. The company calculates the Risk-adjusted discount rate by adding the appropriate risk premium to the risk-free rate. The risk-free rate

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Project XYZ is moderately risky. The company calculates the Risk-adjusted discount rate by adding the appropriate risk premium to the risk-free rate. The risk-free rate is 5%. The company policy is to add appropriate risk premium to the following three classes of projects to compensate for the extra risk: Q Risk Premium for Low Risk Project = 3% Risk Premium for Moderate Risk Project - 5% Risk Premium for High Risk Project = 7% The risk-adjusted discount rate for moderately risky project is: O 8% 13% 10% 12%

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