Recognizing risk Caradine Corp., a media services firm with net earnings of $3,200,000 in the last year, is considering the following projects.
The media services business is cyclical and highly competitive. The board of directors has asked you, as chief financial officer, to do the following:
a. Evaluate the risk of each proposed project and rank it “low,” “medium,” or “high.”
b. Comment on why you chose each ranking.
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