Question: 6. (12 points) Adjusting for Risk Bikes-B-Rode has performed a risk assessment of independent projects. They adjust for project risk by raising the calculated IRR

6. (12 points) Adjusting for Risk Bikes-B-Rode has performed a risk assessment of independent projects. They adjust for project risk by raising the calculated IRR by 2% for low risk projects, leaving the. IRR the same for moderate risk projects, and lowering the calculated IRR by 3% for high risk projects. a. Without capital rationiog, and given their cost of capital of 10%, which projects should Bikes-B-Rode accept? Why? b. With capital rationing, and given their cost of capital of 10% and a budget of $60,000, which projects should Bikes-B-Rode accept? Why

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