7. Risk analysis in capital budgeting United Recyding Inc. Is one of the largest recyders of glass and paper products in the United States. The company is looking into expanding into the cardboard recyding business. The company's CFO has performed a detailed analysis of the proposed expansion. The company's CFO hired a third-party consulting firm to estimate the cost per ton of processing the cardboard. The consulting firm's cost estimate for processing the cardboard was significantly higher than what the OFO had been using in his financial model. Based on the information given, determine which of the statements is correct. When the CFO adjusts the cost per ton of processing the cardboard, the project's NPV will increase. When the CFO adjusts the cost per ton of processing the cardboard, the project's NPV will decrease. Which of the following represents the project's risk to the corporation as opposed to investors' risks? Beta, or market, risk Stand-alone risk Corporate, of within-firm, risk