Decker's is a chain of furniture retail stores. Furniture Fashions is a furniture maker and a supplier to Decker's. Decker's has a beta of 1.38 as compared to Furniture Fashion's beta of 1.12. The risk-free rate of return is 3.5 % and the market risk premium is 8 %. What discount rate should Decker's use if it considers a project that involves the manufacturing of furniture?