What is the most appropriate discount rate to be used in analysis of project cash flows? 1) Weighted average cost of capital for the organization O 2) A required rate of return, set annually by each department in the organization ( 3) Risk-free rate of return, plus a desired risk premium ( 4) Cost of debt (e.g. borrowing money from the bank) ( 5) Cost of equity (e.g. selling shares in the business)