P12-1 Adjusting for Risk Docs R Us has performed a risk assessment of independent projects. They adjust for project risk by raising the calculated IRR by 3% for low risk projects, leaving the IRR the same for moderate risk projects, and lowering the calculated IRR by 2% for high risk projects. Without capital rationing, and given their cost of capital of 11%, which projects should Meds R Us accept? Why? Note that you will add 3% to the Project's IRR if it is low risk {making it look more favorable since it is), leave Average risk Projects' IRRs the same, and subtract 2% from the IRR for high risk Projects (making them less favorable since they are due to the risk}. Risk Project Cost NP'v' IRR Level $21,000 $ 5,000 11% High $1?,000 $ 4,000 16% Average $15,000 $ 2,000 12% High $14,000 $ 4,000 1?% Low $ I'l'IUDUJI' $ 4,000 -1,000 9% Low