7. Within-firm risk and beta risk Understanding risks that affect projects and the Impact of risk consideration Vota Net International has manufacturing, distribution, retaz, and consulting divisions. Projects undertaken by the manufacturing and distribution divisions tend to be low-risk projects, because these divitions are well establiched and have predictable demand, The company started its retail and consulting divizions within the last year, and it is unknown if these divisions will be profitable. The company lanew thet opening these new diviaions. would be rishy, but its management believes the divielons hye the potential to be extremely profitable under fovorable market condibions. The: oompany is eurrently using its whcc to evaluato new projects for all divisions, If Yatta Wet International does not riek-adjust its discount rate for specilic projects properhy, which of tho following ls likely to occur over time? Check all that apply. The firm will become less valuable: The firm will acoept too many relabively riaky projecta. The firm will accept too many relatively ade projects. How do managers typically deal with within-firm riak and beta risk whion they are evcluating a potertial project? Subjecturely Quarititatively How do managers typically deal with within-firm risk and beta risk when they are evaluating a potential project? Subjectively Quantitatively Consider the case of another conpany, Kim Printing is evaluating two mutually exduive projects. They boch require a $3 million invectment todily and have expected neVa of $500,000. Nanagement conducted a full risk analyais of these two projects, and the results are shown below. Which of the following statements about these projects' risk is correct Chock all that apply. Project B has more corporato risk than Projoct A Project A has more market risk than Project B. Project 8 has more maiket rilk than Project A. Project 8 has more stand - alone risk than Projoct A