How might the size of the NPV of a project or the magnitude of a projects IRR be interpreted as an offset to a projects risk? Find a real-world example of a situation in which a firm had a real option for a project, and discuss the implications of this for the NPV of the project. Discuss the concept of a firms target capital structure. How might this be determined? Why do retained earnings have a cost? What is the appropriate tax rate to use for a firm? How would this be determined?