Projects S and L are equally risky, mutually exclusive, and have normal cash flows. Project S's IRR is 15%, while Project L's IRR is 12%. The two projects have the same NPV when the WACC is 7%. Which of the following statements is CORRECT? If the WACC for both projects is 10%, Project S will have a larger NPV than Project L. If the WACC for both projects is 18%, both projects will have positive NPVs. If the WACC for both projects is 13%, Project L will have a larger NPV than Project S. If the WACC for both projects is 9%, both projects will have negative NPVs.

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Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.