Comment on the following statements:

A. "Because our new expansion project has the same systematic risk as the firm as a hole, do no further risk analysis on the project."

b "Our company should accept the new potash mine project at Moosejaw. The cost of additional loans to fund the project is 12%,and our simulations lead us to expect 14% return from the project."

c. It is difficult to decide whether to spend $10 million to reopen our mine because the whether to price of gold is so uncertain. However, if we assume the price of gold grows at an average of 5% a year with a standard deviation of 20% a year, simulation indicates mine the has an average NPV of $500,000. Therefore, we should reopen."