Projects differ in risk, and risk analysis is a critical component of the capital budgeting process. Consider the case of United Recyding Inc.: United Recyding Inc. is one of the largest recydlers of glass and paper products in the United States. The company is looking into expanding into the cardboard recyding business. The company's CFO has performed a detailed analysis of the proposed expansion. The company's CFO used sophisticated software to analyze a large number of scenarios and generate estimated rates of return and risk indexes. Based on the information given, determine which of the statements is correct O The company's CFO used a Monte Carlo simulation to evaluate the project's financial model. O The company's CFO conducted a sensitivity analysis to evaluate the project's financial model. Which of the following is measured by its effect Evaluating risk is an important part of the capital budgeting process on the firm's beta coefficient? O Risk-adjusted cost of capit O Stand-alone risk O Corporate, or within-firm, risk O Market, or beta, risk The problem with using less risky than a firm's when trying to adjust for projects that are more risky or ments are extremely subjective and difficult to justify stand-alone risk market risk corporate, or within-firm, risk a risk-adjusted cost of capital 6 8 9 0