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WSP Inc is involved in a wide range of unirelated pecjects. The company will pursue any project that is thinks will create valise for its

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WSP Inc is involved in a wide range of unirelated pecjects. The company will pursue any project that is thinks will create valise for its stockholders. Conseguently, the risk fevid of the company's projects tends to vary a great deal from project to projcct. If WSp tne does not risk-adjust its dipcount rate for specific projects propelly, which of the following is likely to occur over time? check all that apply. The firm cuidd potentially reject projects that pravide a higher rate of retum than the company should require. The firm's overall ritk level will increase. The firm will indease in value. When a broject involves an entirely new product line, the firm may be able to obtain betas trom nuet play cumapanies lin the new are to to calodate a weighted aveiage cast of capital (WAcc) for lis new product line. Consider the case of mother company. Kimm Bainting is evaluating two mutually exdumve profects. They both reowire a ft million irvectanent today and hawe empected NFVi of 5700,000 . Management condocted a hull risk analysis of these two projects. and the results are shown below. Consiber the case of another company. Kim Printing is evaluating two mutually exchasive projects. They both require a \$1 million investment today and lave toclected fqPVs of 5200,000 . Management conducted a full isk analysis of these twa brojects, and the results are shown below. Which af the follewing statements about these projects" ist is correct? Gheck-ad that aypye Foject a hit mere maknt visk than bojed it livelect k has ifsu quberati fiek than Fropect 6 . Priset A has incoe itandialorie nus uian Droiect B

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