Say IMAX wants to sell one of its movie theaters in Mexico to a local businessperson. IMAX is negotiating with a potential buyer: The buyer is offering a purchase price of USD 50 million. The buyer built a model, and calculated the NPV (business value) at USD 50 million by forecasting future cash flows and applying a discount rate of 12%. IIMAX agrees with the future cash flow projections, but wants to receive a higher price.

What different discount rate should IMAX suggest be used in the model?

Group of answer choices

11%

13%

None of the above