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WSP Inc. is involved in a wide range of unrelated projects. The company will pursue any project that it thinks ail create value for its

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WSP Inc. is involved in a wide range of unrelated projects. The company will pursue any project that it thinks ail create value for its wtockholders. Consequently, the risk ievel of the company's projects tends to vary a great deal from project to project. If WSP Inc does not nsk-adjust its discount rate for specific projects properly, which of the following is ikely to eccur orer time? check as that apply. The firms overall risk level will increase. The firm could potentially reject projects that provide a higher rate of return than the company requires. The firm will become more valuable. When a project involves an entirely new product tine, the firm may be able to obtain betas from to calculate a weighted average cost of capital for its new product line. Consider the case of another company: Davis Printing is evaluating two mutually exclusive projects, They both require a $1 millon investment today and have expected NPVs of s200,000. Management conducted a full risk analysis of these two projects, and the results are shown below. Uavis Printing is evaluating two mutually exclusive projects, They both require a $1 million investment focay and have expected kirks of s200,000: Monagement conducted a full risk analysis of these two projects, and the resuits are shewn below. Which of the following statements about these projects' risk is correct? check ay that apply. Project 8 has more market risk than Project A. Project A has more stand-alone risk than Project B. Project A has more market risk than Project B. Project B has more corporate risk than Project A

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