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Ge Risk classes and RADR Moses Manufacturing is attempting to select the best of three mutually exclusive projects, X, Y, and Z. Although all
Ge Risk classes and RADR Moses Manufacturing is attempting to select the best of three mutually exclusive projects, X, Y, and Z. Although all the projects have 5-year lives, they possess differing degrees of risk. Project X is the most risky; Project Y is in the least risky; and Project Z is in between. The basic cash flow data for each project and the risk-adjusted discount rates (RADRS) used by the firm are shown in the following table a. Find the risk-adjusted NPV for each project. b. Which project, if any, would you recommend that the firm undertake? a. The net present value for project X is $ (Round to the nearest cent.) - X Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) RADR Project X 21.7% Project Y Project Z 13.0% Initial investment (CFO) $175,000 $240,000 14.9% $315,000 Year (t) Cash inflows (CF) 12345 $85,000 $60,000 $87,000 66,000 69,000 87,000 58,000 80,000 87,000 56,000 90,000 87,000 62,000 97,000 87,000 Ner
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