United Reeycing Inc. is one of the largest recyders of glass and paper produets in the United States. The company is looking into expanding into the cardfoard recyoling business. The company's CFO has performed a detailed artalysis of the praposed expansion.

The company's CFO hured a third$-$party consuiting firm to estumate the cont per ton of processing the cardboard. The conisulting firm's cost estimote for processing the cardboard was significantly higher than what the CFO had been using in his finaricial model.

Based on the information given, fetermine which of the statements is correct.

When the CFO adjusts the cost per ton of processing the cardboard, the project's MPV will increase.

When the CFO adjusts the cost per ton of processing the cardboard, the project's NPV will decrease.

Evaluating rak is an important part of the capital budgoting process, Whnch of the following is measured by the variability of the project's expected return?

Market, or beta, risk

Corporate, or within$-$firm, risk

Stand$-$alone risk