Aria Inc. has a long$-$term target capital structure made up of $45\%$ debt and $55\%$ equity. The firm's after$-$tax cost of debt is $9\%,$ cost of internal equity is $13\%,$ and WACC is $11\mathrm{.}20\%.$ Aria is considering a new project that requires an initial investment of $$300,000,$ and has the same risk as the currently on$-$going projects of the firm. The firm has projected that it will have sufficient retained earnings to entirely finance the investment needed for the project. Which of the following statements is true?

Aria should use the after$-$tax cost of debt of $9\%$ as the discount rate to evaluate the new project, as this is the type of capital with the lowest cost.

Aria should use the cost of internal equity of $13\%$ as the discount rate to evaluate the new project, as the firm expects to finance the new project entirely with retained earnings.

Aria should use the WACC of $11\mathrm{.}20\%$ as the discount rate to evaluate the new project, as this is rate that reflects the average risk of the firm's on$-$going projects.

Aria should use a discount rate of $0\%$ to evaluate the new project, as it expects to finance the new project entirely with retained earnings which is costless$.$