A company is evaluating two investment projects, Project A and Project B, each with different levels of risk and an initial investment of Rs. 3,00,000. The risk-free rate of return is 5%. The expected cash flows and their probabilities for each project are as follows: Project A: Expected Cash Flow in Year 1: Rs.100,000 Expected Cash Flow in Year 2: Rs.150,000 Expected Cash Flow in Year 3: Rs.200,000 Project B: Expected Cash Flow in Year 1: Rs.80,000 Expected Cash Flow in Year 2: Rs.120,000 Expected Cash Flow in Year 3: Rs.180,000 The company's financial analysts have determined that Project A has a beta of 1.2, while Project B has a beta of 0.8. The market risk premium is 8%.

Calculate the risk-adjusted discount rate for each project using the Capital Asset Pricing Model (CAPM) and then determine which project the company should choose based on

the risk-adjusted Net Present Value (NPV) criteria.