Question

THE OPTIONS FROM THE DROP DOWN MENU ARE: LOW, MEDIUM, OR HIGH. Thanks!

А Recognizing risk Spin Corp., a media services firm with nat earnings of $3.210,000 in the last year, is considering the following projects. Project Initial investment Details $39,000 Replace existing office furnishings. B 496,000 Purchase digital video editing equipment for use with several existing accounts 453,000 Develop proposal to bid for a $2.110,000 per year 10-year contract with the US Navy, not now an account 688,000 Purchase the exclusive rights to market a quality educational television program in syndication to local markets in the European Union, a part of the firm's existing business activities. The media services business is cydical and highly competitive. The board of directors has asked you, as chief financial officer, to evaluate the risk of each proposed project and rank tow." "medium" or "high" The risk for project Ais (Select from the drop-down menu.) С D Click to select your answer's) and then click Check Answer 3 parts remaining Clear All Final Check

Answer 1

Answer:

The risk of project A is low.

Since the amount is small as compared to total investment and the cash flow can be easily determined.