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Save Answer Question 40 6 points Green Inc. is considering a new project. Based on all methods of assessing risk, the new project has a
Save Answer Question 40 6 points Green Inc. is considering a new project. Based on all methods of assessing risk, the new project has a higher risk than the firm's average project. Given this information, which of the following would be reasonable for management to do in evaluating the project? a. Ignore the risk differential if the project would amount to only a small fraction of the firm's total assets. b. Increase the WACC used to evaluate the project to reflect its higher-than-average risk. Oc Reject the project, since its acceptance would increase the firm's risk. Od. Increase the estimated NPV of the project to reflect its greater risk
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