Question: I have a problem that asks to use an adjust factor of +2% when calculating the discount rate/ WACC. what part of the calculation does

I have a problem that asks to use an adjust factor of +2% when calculating the discount rate/ WACC. what part of the calculation does that affect or is it just added to the end?

The new RDS project is somewhat riskier than a typical project for DEI, primarily because the plant is being located overseas. Management has told you to use an adjustment factor of +2.0 percent to account for this increased riskiness. Calculate the appropriate discount rate to use when evaluating DEI's project.

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