You correctly computed the cos

You correctly computed the cost of capital for your project at 12%. When you present it to your senior manager she argues that this project has a lot of uncertainty as you want to use a new technology that has not been used by any other firm in this industry. She is worried that your project will be met with skepticism by the stock analysts that follow your firm and that they might downgrade the stock. She recommends to reevaluate your project with an increased cost of capital of 15% to reflect the additional risk that the new technology brings for the company. Do you agree with her argument?

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