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Country Wallpapers is considering investing in one of three mutually exclusive projects, E,F, and G. The firm's cost of capital, r, is 15.4%, and the
Country Wallpapers is considering investing in one of three mutually exclusive projects, E,F, and G. The firm's cost of capital, r, is 15.4%, and the risk-free rate, RF, is 9.6%. The firm has gathered the following basic cash flow and risk index data for each project: NOTE: Use this information to answer questions 12 thru 22. Do not enter dollar or percent signs in your answers. Round off all of your numerical responses in questions 12 thru 22 to two (2) decimal points. Which project is preferred in this situation? Project , with the highest NPV, is preferred. The firm uses the following equation to determine the risk-adjusted discount rate, RADRj, for each project j : RADRj=RF+Rlj(rRF) where RF= risk-free rate of return, Rlj= risk index for project j, and r= cost of capital. Question 16 3 pts What is the RDAR for project E? (Round this percentage to two decimal places, and do not include '\%' sign in your response). What is the RDAR for project F ? (Round this percentage to two decimal places, and do not include '\%' sign in your response). Question 18 3 pts What is the RDAR for project G? (Round this percentage to two decimal places, and do not include '\%' sign in your response). Use the RADR for each project to determine its risk-adjusted NPV. (Hint: Make sure to enter negative signs where appropriate). Question 19 3 pts What is the risk-adjusted net present value for project E? (Round to two decimal places, and do not include '\$' sign in your answer.) What is the risk-adjusted net present value for project F ? (Round to two decimal places, and do not include '\$' sign in your answer.) Question 21 What is the risk-adjusted net present value for project G ? (Round to two decimal places, and do not include '\$' sign in your answer.) Question 22 Which project is preferable in this situation? Project will be preferable
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