Understanding risks that affect projects and the impact of risk consideration Garcia Real Estate is involved in commercial real estate ventures throughout the United States. Some of these ventures are much riskier than other ventures because of market conditions in different regions of the country. If Garcia does not risk-adjust its discount rate for specific ventures properfy, which of the following is likely to occur over time? Check all that appiy. The firm's overail risk level will increase. The firm will increase in value. The firm could potentially reject projects that provide a highter rate of return than the company should require. When a project involves an entirely new product line, the firm may be able to obtain betas. from to calculate a weighted average cost of capital (WACC) for its new product line. Consider the case of another company. Davis Printing is evaluating two mubually exclusive projects. They both require a 53 million investment today and have expected NPVs of $600,000. Management conducted a full risk analysis of these two projects, and the results are shown below. Which of the following statements about these projects' risk is correct? [heck all that apply. Project B has more stand-alone risk than Project A. Project B has more corporate risk. than Project A. Project A has more corporate risk than Project B. Project A has more stand-alone risk than Project B