For any given capital project proposal, the discount rate$/$required rate of return should be based on the:

$$

A$)$ the prime interest rate in effect.

B$)$ current risk level of the overall firm.

C$)$ average of the company's overall cost of capital for the past five years.

D$)$ actual sources of funding used for the project.

E$)$ risks associated with the use of the funds required by the project.