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Consider the case of another company. Turnkey Printing is evaluating two mutually exclusive projects. They both require a $5 million investment today and have expected
Consider the case of another company. Turnkey Printing is evaluating two mutually exclusive projects. They both require a $5 million investment today and have expected NPVs of $1,000,000. Management conducted a full risk analysis of these two projects, and the results are shown below. Risk Measure Project A $400,000 Standard deviation of project's expected NPVS Project beta Correlation coefficient of project cash flows (relative to the firm's existing projects) Project B $600,000 0.7 0.8 0.6 Which of the following statements about these projects' risk is correct? Check all that apply. Project A has more market risk than Project B. O Project A has more corporate risk than Project B. O Project A has more stand-alone risk than Project B. Project B has more corporate risk than Project A
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