Question 9 1 pts Which of the following should be considered when a company estimates the cash flows used to analyze a proposed project? The new project is expected to reduce sales of one of the company's existing products by 5%. Since the firm's director of capital budgeting spent some of her time last year to evaluate the new project, a portion of her salary for that year should be charged to the project's initial cost. The company has spent and expensed $1 million on R&D associated with the new project. The company spent and expensed $10 million on a marketing study before its current analysis regarding whether to accept or reject the project. The firm would borrow all the money used to finance the new project, and the interest on this debt would be $1.5 million per year. D Question 10 1 pts A firm is considering a new project whose risk is greater than the risk of the firm's average project, based on all methods for assessing risk. In evaluating this project, it would be reasonable for management to do which of the following? Increase the estimated IRR of the project to reflect its greater risk. Increase the estimated NPV of the project to reflect its greater risk Increase the cost of capital used to evaluate the project to reflect its higher-than-average risk Reject the project, since its acceptance would increase the firm's risk. Ignore the risk differential if the project would amount to only a small fraction of the firm's total assets