Selecting the Discount Rate in FCF Valuation

XYZ Inc. is a technology company that has shown consistent growth in revenue and cash flows over the past five years. The company has not paid dividends in the last three years, instead choosing to reinvest its earnings into research and development to boost future growth. Analysts are utilizing a Free Cash Flow (FCF) model to estimate the intrinsic value of the firm. To proceed with the valuation, they need to determine the appropriate discount rate for the projected free cash flows. Which of the following should be the primary consideration when selecting the discount rate for XYZ Inc.?