In the following questions, identify the effect of each of the factors on the value of the venture to an entrepreneur (indicate increase, decrease, no change, or uncertain).Assume that the venture is financed entirely by the entrepreneur, that the entrepreneur divides wealth between the venture and a market index, and that the project is small enough that the entrepreneur can always duplicate the risk of the portfolio that includes the venture by leveraging an investment in the market.Explain your reasoning. (15 points)

1.Expected cash flows of investing in the venture decline.

2 The entrepreneur inherits a large amount of money

3 Total risk of the venture increases