Problem:
A company is considering three different capital projects. Each project will require the same amount of capital outflow. As the CFO you instruct your financial analyst to discount project A's cash stream at 14 percent, project B's cash stream at 12 percent, and project C's cash stream at 17 percent. In doing so, which project is the least risky project to you? ____________ . Which project is the most risky project to you? __________?