Which of the following should lead to a higher project discount rate?

a. A pharmaceutical firm learns that FDA approval of its new drug under development is more uncertain than previously believed.

b. An industrial firm learns the robotic equipment to be used in the manufacture of a proposed new product has a higher failure rate than initially believed.

c. A petroleum firm learns that its offshore drilling operations are at greater risk of oil spills and the resulting law suits.

d. A smartphone manufacturer learns a competitor is developing an operating system with features superior to the one it is currently developing. e. None of the above.