investment in one of 3 mutually exclusive projects is being considered E, F, G. Cost of capital 15.2% and risk free rate is 10.1%

The Following shows basic cash flow & risk index data for each project

E $14.000 Initial investment (CF) Year (t) 1 2. 3 4 Risk index (RI) Project (1) F G $11,000 $18,000 Cash inflows (CF) $6,200 $3,600 4,500 6,600 5,000 8,400 2,500 11,100 0.98 0.58 $5,500 5,500 5,500 5,500 1.79 a. Find the net present value (NPV) of each project using the firm'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 : RADR; = Rp + R;* (r-RF) where Re = risk-free rate of return, RI; = risk index for project, and r = 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