Successfully completing this activity will help you in achieving the following objectives:Identify "relevant" cash flows that should and should not be included in a capital botgeting analysis.Estimate a project's relevant cash flows and put them into a time line formut that can be used to calculate a and other capital budgeting metrics.Explain how risk is measured, and use this measure to adjust the frem's WACC to account for differential prof.Calculate the NPV of mulually exclusive projects.Explain three reasons why corporate risk is important even if a frmm stockholders are well diversified.Identify two reasons why stand-alone risk is important.Demonstrate sensitivity and scenario analyses and explain Monte Cario simulation.Discuss the two methods used to incorporate risk into caphal butgetire decisions.