10-1 Recognizing risk. Caradine Corp., a media services firm with net earnings of $3,200,000 in the last year, is considering several projects. Project A Initial Investment $ 35,000 Details Replace existing office furnishings. B 500,000 Purchase digital film-editing equiment for use with several existing accounts. 450,000 Develop proposal to bid for a $2,000,000 per year 10-year contract with the U.S. Navy, not now an account. D 685,000 Purchase the exclusive rights to market a quality educational television program in syndication to local markets in the European Union, a part of the firm's existing business Activities. The media services business is cyclical and highly competitive. The board of directors has asked you, as chief financial officer, to: a. Evaluate the risk of each proposed project and rank it "low", "mdium or "high". b. Comment on why you chose each ranking