5 years 5 years 12-10 (book/static) Question Help Risk-adjusted discount rates - Tabular After a careful evaluation of investment alternatives and opportunities Masters School Supplies has developed a CAPM-type relationship linking a risk index to the required return (RADR), as shown in the table. The firm is considering two mutually exclusive projects, A and B Following are the data the firm has been able to gather about the projects Data Table Project Project B Initial investment (CF) $20,000 530,000 Project life Annual cash inflow (CF) $7.000 $10.000 Risk index Required return (RADR) Risk index 0.2 14 00 70% (nisk free rato. R) 02 8.0 All the firm's cash flows for each project have already been adjusted for taxes 0.4 90 a. Evaluate the projects using nekadiusted discount rates 0.6 10.0 a. The net procent value for project Ass (Round to the nearest cont.) 00 110 10 120 12 130 14 140 16 150 18 160 20 170 Enter your answer in the answer box and then click Check Answer Print Dono 2 parte cemaining