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the John used a 12% discount rate to evaluation a new project, Project-1. However, Mr. Lee believes the overall risk of Project-2 is 2% higher
the John used a 12% discount rate to evaluation a new project, Project-1. However, Mr. Lee believes the overall risk of Project-2 is 2% higher than the Project-1 and requires additional 4% return to compensate this perceived risk. Therefore what discount rate we need to use for calculating NPV of Project-2?
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