Project Initial Investment Details
A $ 35,000 Replace existing office furnishings.
B 500,000 Purchase digital film-editing equipment for use with several existing accounts.
C 450,000 Develop proposal to bid for a $2,000,000 per year 10-year contract with the U.S. Navy, not now an account.
D 685,000 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 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.