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0 0.9 9.5 9 10 10.1 The firm is analyzing two projects based on their RADRs. Project Sourdough requires an initial investment of $11,600 and
0 0.9 9.5 9 10 10.1 The firm is analyzing two projects based on their RADRs. Project Sourdough requires an initial investment of $11,600 and is assigned a risk index of 5. Project Greek Salad requires an initial investment of $7,300 and is assigned a risk index of 8. The two projects have 6-year lives. Sourdough is projected to generate cash inflows of $5,900 per year. Greek Salad is projected to generate cash inflows of $3,200 per year. Use each project's RADR to select the better project. The NPV for project Sourdough is $. (Round to the nearest cent.) recreated in the following Like most firms in its industry, Yeastime Bakeries uses a subjective risk assessment tool of its own design. The tool is a simple index by which projects are ranked by level of perceived risk on a scale of 0-10. The scale table. 1 Risk index Required return 0 4.1% (current risk-free rate) 4.7 2 5.3 3 5.9 4 6.5 5 7.1 (current IRR) 6 7.7 7 8.3 8 8.9 The NPV for project Sourdough is $. (Round to the nearest cent.) Question Viewer
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