If Garcia does not risk$-$adjust its discount rate for specific ventures properly, which of the following is likely to occur over time? Check all that apply.

The firm could potentially reject projects that provide a higher rate of return than the company should require.

The firm's overall risk level will increase.

The firm will increase in value.

How do managers typically deal with within$-$firm risk and beta risk when they are evaluating a potential project?

$$ Quantitatively

$$ Subjectively

Consider the case of another company. Turnkey Printing is evaluating two mutually exclusive projects. They both require a $$5$ million investment today and have expected NPVs of $$1,000,000.$ Management conducted a full risk analysis of these two projects, and the results are shown below.

$\backslash$table$[[$Risk Measure,Project A$,$Project B$],[$Standard deviation of project's expected NPVs$,$$$400,000,$$$600,000$