When making an investment decision, the choice of the appropriate cost of capital is a jey step. In particular, one has to be sure that the cost of capital properly reflects the risk connected with the estimated cash flows that need to be discounted. In other words, there must be consistency between cash flow risk and the cost of capital. This implies that the estimated cost of capital that the analysist uses must be consistent with the sector in which the company plans to invest. In light of this, choose one of the following cases and discuss whether the proposed project is likely to have risk similar to the average risk of the firm, and hence the same cost of capital used by the firm can be used for the project under consideration, or if a different cost of capital is appropriate. 2. Microsoft, a software and hardware producing company, is considering to purchase new buildings to expand its offices. When making an investment decision, the choice of the appropriate cost of capital is a jey step. In particular, one has to be sure that the cost of capital properly reflects the risk connected with the estimated cash flows that need to be discounted. In other words, there must be consistency between cash flow risk and the cost of capital. This implies that the estimated cost of capital that the analysist uses must be consistent with the sector in which the company plans to invest. In light of this, choose one of the following cases and discuss whether the proposed project is likely to have risk similar to the average risk of the firm, and hence the same cost of capital used by the firm can be used for the project under consideration, or if a different cost of capital is appropriate. 2. Microsoft, a software and hardware producing company, is considering to purchase new buildings to expand its offices