Country Wallpapers is considering investing in one of three mutually exclusive projects, E, F, and G.

Country Wallpapers is considering investing in one of three mutually exclusive projects, E, F, and G. The firm's cost of capital, r, is 15.3 % , and the risk-free rate, R, is 10.4 %. The firm has gathered the following basic Risk-adjusted discount rates-Basic cash flow and risk index data for each project Find the net present value (NPV) of each project using the firm's cost of capital The firm uses the tollowing equation to determine iData Table Which project is preferred in this siluation? nisk-adjusted discount rate, RADR, tor each project RADR R Rx (rR) the icon located on the top right comer of the data table below in order to copy its (Click contents into a spreadsheet.) where R risk-free rale of return, Rl- risk index for project andr cost of capilal. Substitute each projecrs nsk index into this equation to determine its RADR. Use the RADR for each project to detemine its risk-adjusted NPV Which project is preferable in this situation? d. Compare and discuss your findings in parts (a) and (c) Which project do you recommend thet the firm accept? Project G Initial investment (CFa) $15,400 $11,000 $19.500 Find the net present value (NPV) of each project using the firm's cost of capital Cash inflows (CF) Year () $6 400 $3 800 5 800 6 400 3,500 5500 Risk index (RI,) 1.85 1.01 0 59 Print Done