11:17 PM Tue May 7 < Group E Final Exam J00-45,235+15, = $49,765 17. CBA Company is considering two mutually exclusive projects, A and B. The company typically measures the beta of any investment project that it undertakes to calculate a risk-adjusted discount rate using the CAPM. Currently the risk-free rate is 7% and the expected return on the market portfolio is 12%. Use the following project data to determine: Project A Project B --$20,000 Initial Investment (CFO) Project Life --$15,000 3 years 3 years Annual cash Flows (CF) $7,000 $10,000 Project Beta 0.4 1.8 a. b. C. Ignoring any differences in risk and assuming that the firm's cost of capital is 10%; calculate the NPV for each project. Use NPV to evaluate the projects, using risk-adjusted discount rates (RADRs) to account for risk. Compare, contrast and explain your findings in parts a and b +8 LTE 28%