Caradine Corp., a media services firm with net earnings of $3,200,000 in the last year, is considering the following projects.

The media services business is cyclical and highly competitive. The board of directors has asked you, as chief financial officer, to do the following:
a. Evaluate the risk of each proposed project and rank it €œlow,€ €œmedium,€ or €œhigh.€
b. Comment on why you chose eachranking.

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Project Initial invcetmnt Details $35,000 Replace existing office furnishings. Purchase digital film-cditing cquipment for use with several existing accounts. 500,000 450,000 685,000 Develop proposal to bid for a $2,000,000 per year 10-year contract with the U.S. Navy, not now an account. Purchase the exclusive rights to market a quality cducational television program in syndication to local markets in the Europcan Union, a part of the firm's existing business activitics