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Understanding risks that affect projects and the Impact of risk consideration WSP Inc. is invalved in a wide range of unrelated projects. The company will

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Understanding risks that affect projects and the Impact of risk consideration WSP Inc. is invalved in a wide range of unrelated projects. The company will pursue any project that it thinks will create value for its stockholders. Consequently, the risk level of the company's projects tends to vary a great deal from project to project: If wSp inc. does not risk-adjust its discount rate for specific projects properiy, which of the following is likely to occur over time? Check all that apply, The firm's overall risk level will increase. The firm will increase in value. The flrm could potentially reject projects that provide a higher rate of return than the company should require. How do managers typically deal with within-firm risk and beta risk when they are evaluating a potential project? Subjectively Quantitatively Consider the case of another company. Chrome Printing is evaluating two mutually exdusive projects. They both require a $1 millicn investment today and have expected NpVs of $200,000. Management conducted a full risk analysis of these two projects, and the results are shown below. Which of the following statements about these projects' risk is correct? Check all that apply. Project A has more corporate risk than Project B. Project B has more market risk than Project A. Project B has more corporate risk than Project A. Project A has more market risk than Project B

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