Hi
I am currently struggeling with a part on an financial assignment, due to the fact that I do not exactly get what the text tries to tell me

This is the section that needs analysis:
This progress makes us more confident in the value of Budapest Airport. Indeed the Board now believes that a discount rate of 7.25% should be applied given the changed risk profile of the business. On our acquisition assumptions, reducing the discount rate by 0.75% in this way would increase the purchase valuation of Budapest by approximately £300 million. This is another piece of value upside in the BAA story.

How can the Board decide what interest rate should be paid, and why would they agree to recieve less money due to lower risk?

Hope someone can help me out here