An integrated rate by increasing discounted rate to adjust risk in more risky project.
According to Besely and Brigham,” The discount rate that applies to a particular risky stream of income it is equal to the risk free rate of interest plus a risk premium appropriate to the level of risk attached to a particular projects income stream.”
In this position , to more risk, to more risk adjusted discounted rates. (Project's risk ↑ = RADR's rate ↑ )