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The new RDS project is somewhat riskier than a typical project for DEI, primarilybecause the plant is being located overseas. Management has told you to

The new RDS project is somewhat riskier than a typical project for DEI, primarilybecause the plant is being located overseas. Management has told you to use anadjustment factor of +2 percent to account for this increased riskiness. Calculate theappropriate discount rate to use when evaluating DEIs project.

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