Given that rational investors will diversify their investment portfolios, the only risk that matters is the one that cannot be eliminated by diversification. How do we measure the risk that cannot be eliminated by diversification? Standard deviation O Variance Correlation coefficient Beta A company is considering a project that will cost $2 million. The project will generate annual after-tax cash flows of $500,000 per year for the following four years. The WACC is 12% and the company's weight of debt is 40% and equity 60%. (They have no preferred stock). The flotation cost for equity is 3% and the flotation cost for debt is 2%. If this firm follows the practice of incorporation flotation costs in the the project's initial investment, what will the flotation- adjusted cash flow in year o be? $2,040,806 $2,051,282 $2,053,388 $2,061,856