6. (8 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. Without capital rationing, and given their cost of capital of 10%, which projects should Bikes-B-Rode accept? Why? Risk Project Cost NPV IRR Level $16,000 $ -1,000 8% Low $28,000 4,000 13% Low $34,000 4,000 12% Average $42,000 $ 5,000 12% High