i Data Table -X Risk index 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 Required return (RADR) 6.7% (risk-free rate, Rp) 7.8 8.9 10.0 11.1 12.2 13.3 14.4 15.5 16.6 17.7 Print Done The firm is considering two mutually Risk-adjusted discount ratesTabular After a careful evaluation of investment alternatives and opportunities, Masters School Supplies has developed a CAPM-type relationship linking a risk index to the required return (RADR), as shown in the table ! exclusive projects, A and B. Following are the data the firm has been able to gather about the projects. Project B $28,000 Initial investment (CF) Project life Annual cash inflow (CF) Risk index Project A $22.000 6 years $7,100 0.4 6 years $10,100 1.2 All the firm's cash flows for each project have already been adjusted for taxes. a. Evaluate the projects using risk-adjusted discount rates. b. Discuss your findings in part (a), and recommend the preferred project. a. The net present value for project A is $ (Round to the nearest cent.) The net present value for project B is $ (Round to the nearest cent.) b. Discuss your findings in part (a), and recommend the preferred project. (Select from the drop-down menus.) Project A is preferable to Project B since the NPV of A is greater than the NPV of B