John Q. Enterprises is considering two potential investments. The probability distributions of annual end-of-year cash flows for the respective projects are:

Project A	Project B
Probability	Outcome	Probability	Outcome
0.25	$10,000	0.25	$12,000
0.50	$15,000	0.50	$15,000
0.25	$20,000	0.25	$18,000

Both projects will require an initial outlay of $45,000 and will have an estimated life of 6 years. Project A is considered a riskier investment and will have to have a risk-adjusted required rate of return of 15%, while Project B's risk-adjusted required rate of return is 12%. a. Determine the expected value of each project's annual cash flow. b. Determine each project's risk-adjusted net present value.