Tires and More is a levered company providing automobile supplies through its retail outlets. The company is considering expanding into electric scooter sales. Since this is an entirely new venture, the company should

a.

use the current company beta when computing the required risk premium for the project.

b.

use the market beta when computing the projects discount rate.

c.

increase the projects initial cost by a factor of (1 + Company ) to offset the increased risk.

d.

use the companys cost of equity as the projects discount rate.

e.

use the pure play approach to assign a discount rate to the project.