When making an investment decision, the choice of the appropriate cost of capital is a fundamental 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.

In light of this, discuss whether each of the following projects 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.

1. The Clorox Company (that produces household cleaning products) considers launching a new version of "Armor All", designed to clean and protect notebook computers.
2. Google, Inc. (a software and online advertising company) plans to purchase real estate to expand its headquarters
3. Target Corporation (a US chain of discount retail stores) decides to expand the number of stores it has in the southeastern United States
4. GE (an American multinational conglomerate) decides to open a new Universal Studios theme park in China.