16. (10 points, show your work): Under Armour, Inc. is considering two potential investments. The probability distributions of annual end-of-year cash flows for the respective projects are: Project A Project B Probability Outcome Probability Outcome .25 .25 .50 .25 $20,000 $30,000 $40,000 .50 $24,000 $30,000 $36,000 moy .25 Both projects will require an initial outlay of $100,000 and will have an estimated life of 6 years. Project A is considered a riskier investment and will have a risk- adjusted required rate of return of 15%, while Project B's risk-adjusted required rate of return is 12%. a) Determine the expected value of each project's annual cash flow. Project A Project B b) Determine each project's risk-adjusted net present value. Project A Project B