Understanding risks that affect projects and the impact of risk consideration Yatta Net International has manufacturing, distribution, retail, 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 compary 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 nisky, but its management believes the divisions have the potential to be extremely profitable under favorable market conditions. The company is currently using its WAOC to evaluate new projects for all divisions, If Yatta Net International does not risk-adjust its discount rate for specafic projects properly, which of the following is likely to occur over time? Check anl that apply. The fim will accept too many relatively safe projects. The firm will become less valuable. The firm will accept too many relatively risky projects. How do managers typically deal with within-firm risk and beta risk when they are evaluating a potential project? Subjectwely Quantitatively Consider the case of another company. Kim Printing is evaluating two mutually exdusive projects. They both require a $3 million investment today and have expected NRVs of 5600,000 . Management conducted a full risk analysis of these two projects, and the results are shown below. Subjectively Quantitatively Consider the case of another compeny. Kim Printing is evaluating two mutually exdusive projects. They both require a $3 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? Check all that apply. Project A has more stand-alone risk than Project B. Project A has more corporate risk than Project B. Project B has more corporate risk than Project A. Project A has more market risk than Project B