Abakery company is considering one capital budgeting project involving the replacement of a sophisticated brick oven, and another capital budgeting project involving research and development into synthetic food substitutes. which of the following statements is most correct concerning the riskminusadjusted discount rate(s) for the projects?
a. the rate should be the same for both projects because they are being considered by one company with the same common shareholders.
b. the rate should be higher for the replacement project because the company is more certain of the returns from a project similar to their existing business.
c. the rate will likely be higher for the replacement project because the likelihood of success is higher.
d. the rate will likely be higher for the research and development project because of the uncertainty involved with research and development projects.

Richardson hired j. c. flood company, a plumbing contractor, to correct a stoppage in the sewer line of her house. the plumbing company's 'snake' device, used to clear the line leading to the main sewer, became caught in the underground line. to release it, the company excavated a portion of the sewer line in richardson's backyard. in the process, the company discovered numerous leaks in a rusty, defective water pipe that ran parallel with the sewer line. to meet public regulations, the water pipe, of a type no longer approved for such service, had to be replaced either then or later, when the yard would have to be excavated again. the plumbing company proceeded to repair the water pipe. though richardson inspected the company's work daily and did not express any objection to the extra work involved in replacing the water pipe, she refused to pay any part of the total bill after the company completed the entire operation. j. c. flood company then sued richardson for the costs of labor and material it had furnished. (c) for what, if anything, should richardson be liable? explain."