Consider only the cost schedule below of two comparable projects - Assume the cost schedule below is the only thing different between the two projects. - Which project is expected to have a riskier profile? - In other words, which will likely have more variability in the Operating Cash Flows through time?

	A	B
Fixed Costs	$300,000	$300,000
Variable Costs	$20,000	$280,000
Total Costs	$320,000	$580,000

Multiple Choice

• Project A

• Project B

• Neither, they both should be the same.