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Understanding risks that affect projects and the impact of risk consideration company is currently using its WACC to evaluate new projects for all divisions. If
Understanding risks that affect projects and the impact of risk consideration company is currently using its WACC to evaluate new projects for all divisions. If Yatta Net International does not risk-adjust its discount rate for specific projects properly, which of the following is likely to occur over the all that apply. The firm will become less risky. The firm will reject too many relatively safe projects. The firm will make poor capital budgeting decisions that could jeopardize the long-run viability of the company. When a project involves an entirely new product line, the firm may be able to obtain betas from to calculate a weighted average cost of capital (WACC) for its new product line. and have expected NPVs of $600,000. Management conducted a full risk analysis of these two projects, and the results are 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 A has more stand-alone risk than Project B. Project B has more market risk than Project A. Project A has more market risk than Project B
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