Southern Imports is an all-equity firm with a beta of 1.32. The firm is considering a new project that entails less risk than its current operations and thus management feels that the firm's beta should be lowered by .18 when assigning a discount rate to this project. The market rate of return is 9.4 percent and the risk-free rate is 2.8 percent. What discount rate should be assigned to this project?

Group of answer choices

A. 11.46 percent

B. 11.21 percent

C. 10.87 percent

D. 6.49 percent

E. 10.32 percent