Question: Taussig Technologies is considering two potential projects, X and Y. In assessing the projects' risks, the company estimated the betn of ench project versus both

 Taussig Technologies is considering two potential projects, X and Y. In

Taussig Technologies is considering two potential projects, X and Y. In assessing the projects' risks, the company estimated the betn of ench project versus both the company's other assets and the stock market, and it also conducted thorough scenario and simulation analyses. This research produced the following data: Project X Project Y Expected NPV $350,000 $350,000 Standard deviation (NPV) $100,000 $150,000 Project beta (vs, market) 1.4 0.8 Correlation of the project cash flows are not Cash flows are highly cash flows with cash flows correlated with the cash correlated with the cash from currently existing flows from existing flows from existing projects projects projects. Which of the following statements is CORRECT? a. Project X has more corporate (or withinfirm.risk than Project Y. b. Project X has more stand-alone risk than Project O c. Project X has the same market risk as Project Y since its cash flows are not correlated with the cash flows of existing projects d. Project X has more market risk than Project Y. e. Project X has the same level of corporate risk as Project Y

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