Initial cost of a project is 100000.cash inflows of 20000,40000,50000,and 40000 for year 1to4 respectively risk adjusted discount is 12% while risk free rate is 10%.which rate used to evaluate projec?

To evaluate the project, we should use the risk-adjusted discount rate of 12% because it takes into account the risk associated with the project. The risk-free rate of 10% is not sufficient to accurately evaluate the project's cash flows.