Levenstein Co., a U.S. based MNC, was considering establishing a consumer products division in South Africa, which would be financed by local banks. Levenstein completed its capital budgeting analysis in August. Then, in November, the South African government leadership stabilized, and political conditions improved in the country. In response, Levenstein increased its expected cash flows by 20 percent but did not adjust the discount rate applied to the project. Should the discount rate be affected by the change in the political conditions?