Understanding risks that affect projects and the impact of risk consideration Yatta Net International hes manufacturing, distribution, retall, and consulting divisions. Projects undertaken by the manufacturing and distribution divisions tend to be low-risk projects, because these divisions are well established and have predictable demand. The company started its retail and consulting divisions within the last year, and it is unknown If these divisions will be profitable. The company knew that opening these new divisions would be risky, but its management believes the divisions have the potential to be extremely profitable under favorable market conditions. The company is currently using its WACC to evaluate new projects for all divisions. Ir vatta Net International does not risk-adjust its discount rate for specific projects property, which of the following is likely to occur over time? Check all that apply REE 7. limited ted The firm will increase in value The firm could potentially reject projects that provide a higher rate of return than the company should require The firm's overall level will increase Risk Measure Standard deviation of project's expected NPVS Project beta Project A Project B $240,000 $360,000 0.9 1.1 Correlation coefficient of project cash flows (relative to the firm's existing projects) 0.7 0.9 7- Zed Which of the following statements about these projects' risk is correct? Check all that apply, Project A has more market risk than Project B Project A has more stand-alone risk than Project El project has more corporate risk than Project A Project A has more corporate risk than Project