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 in class V, the highest-risk class; project Y is in class II, the below-average-risk class; and project Z is in class III, the average-risk class. The basic cash flow data for each project and the risk classes and risk-adjusted discount rates (RADRs) used by the firm are shown in the following tables LOADING....

a. Find the risk-adjusted NPV for each project.

b. Which project, if any, would you recommend that the firm undertake?

Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Project X $177,000 Project Z $312,000 Project Y $236,000 Cash inflows (CFt) $54,000 64,000 70,000 87,000 96,000 Initial investment (CFo) Year (t) $84,000 66,000 55,000 55,000 55,000 $88,000 88,000 88,000 88,000 88,000 4 Risk Classes and RADRs Risk Class Description Lowest risk Below-average risk Average risk Above-average risk Highest risk Risk adiusted discount rate (RADR 10.7% 13.6 15.4 19.5 IV PrintDone