Wipawee Co. has an equity cost of capital of 16.97%. The weight of debt is .6, the tax rate is 34%, and the cost of debt is 11%. Wipawee is considering using the Adjusted Present Value method to value a project (this method entails calculating the value of the project without the financing side effects, and then adding back the value of financing side effects one by one). What is the discount rate that they would use in their analysis to find the pure value of the project (i.e. the unlevered NPV or the value aside from financing side effects)?

A. 0.08%

B. 3.06%

C. 14.0%

D. 16.97%

E. None of the above.