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, RE, is 9.9%. The firm has gathered the following basic cash flow and risk index data for each project Risk-adjusted discount rates-Basic a. Find the net present value (NPV) of each project using the fim's cost of capital. Which project is preferred in this situation? b. The firm uses the following equation to determine the risk-adjusted discount rate, RADR, for each project j RADR R R,(r-R) X where RE risk-free rate of return, RI, risk index for project j, andr cost of capital. Substitute each project's risk index into this equation to determine its RADR. c. Use the RADR for each project to determine 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 that the firm accept? Data Table a. Find the net present value (NPV) of each project using the fim's cost of capital. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) The net present value for project E is S Project ( (Round to the nearest cent.) G The net present value for project F is $(Round to the nearest cent.) Initial investment (CF) $15,800 $19,100 $11,000 Year (t Cash inflows (CF $5,900 The net present value for project G is $(Round to the nearest cent.) $4,200 7,000 $5,500 5,500 5,500 5,500 1.76 1 2 3,800 5,200 2,500 1.05 Which project is preferred in this situation? (Select from the drop-down menu.) 3 7.800 4 12,900 with the highest NPV, is preferred Project . Risk index (RI 0.57 b. The firm uses the following equation to determine the risk-adjusted discount rate, RADR, for each project j RADR,= RE RI(-Re) where RE risk-free rate of return, RI, risk index for project j, and r = cost of capital. %. (Round to two decimal places.) The RADR for project E is The RADR for project F is. (Round to two decimal places.) %. (Round to two decimal places.) The RADR for project G is c. Use the RADR for each project to determine its risk-adjusted NPV Print Done The risk-adjusted net present value for project E is S (Round to the nearest cent.) The risk-adjusted net present value for project F is S(Round to the nearest cent.) The risk-adjusted net present value for project G is S(Round to the nearest cent.) Which project is preferable in this situation? (Select from the drop-down menu.) will be preferable. Project d. Compare and discuss your findings in parts (a) and (c). Which project do you recommend that the firm accept? (Select from the drop-down menu.) has the highest risk-adjusted NPV and should be chosen After adjusting the discount rate, even though all projects are still acceptable, the ranking changes. Project Enter vour answer in each of the answer boxes