Religious Studies homework help. “A firm is considering a new project whose risk is greater than the risk of the firms average project, based on all methods for assessing risk. In evaluating this project, it would be reasonable for management to do which of the following?a. Increase the estimated IRR of the project to reflect its greater risk.b. Increase the estimated NPV of the project to reflect its greater risk.c. Reject the project, since its acceptance would increase the firms risk.d. Ignore the risk differential if the project would amount to only a small fraction of the firms total assets.e. Increase the cost of capital used to evaluate the project to reflect its higher-than-average risk.QID 8099234Solution:e. Increase the cost of capital used to evaluate the project to reflect its higher-than-average risk
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