Bikes-B-Rode has performed a risk assessment of independent projects. They adjust for project risk by raising the calculated IRR by 2% for low risk projects, leaving the IRR the same for moderate risk projects, and lowering the calculated IRR by 3% for high risk projects. Without capital rationing, and given their cost of capital of 10%, which projects should Bikes-B-Rode accept? Why? Risk Project Cost NPV IRR Level A $16,000 $ -1,000 8% Low B $28,000 $ 4,000 13% Low C $34,000 $ 4,000 12% Average D $42,000 $ 5,000 12% High

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