Laura Smith, the CFO of the dessert mix division, is evaluating an expansion opportunity and needs to determine the correct cost of capital for projects in her division. The cash flows of the dessert division have low total variability, but are the most pro-cyclical of the three divisions. In other words, on average, they see the largest percentage increase in operating cash flow when the economy is expanding and the largest percentage decline in recessions. What can we say about the cost of capital that should be used in the dessert mix division? Explain completely.