Following are three independent projects Peanut/Pecan Processing (PPP) is evaluating:

Project	IRR		Risk
P	11.5	%	Low
Q	14.5		Average
R	17.0		High

PPP generally considers risk when examining projects by adjusting its average required rate of return, r, which equals 12 percent. A 4 percent adjustment is made for high-risk projects, and a 3 percent adjustment is made for low-risk projects. Which project(s) should PPP purchase? Round your answers to the nearest whole number.

Project	Risk-Adjusted r	Acceptable?
P	%	-Select-YesNoItem 2
Q	%	-Select-YesNoItem 4
R	%	-Select-YesNoItem 6

Thus, -Select-Project PProject QProject RProjects P and QProjects P and RProjects Q and Rall projectsnone of projectsItem 7 should be purchased.