P12-12 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 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 Project X Project Y Project Z $180,000 $235,000 Initial investment (CFo) S310,000 Cash inflows (CF) Year $80,000 $50,000 $90,000 70,000 60,000 90,000 60,000 70,000 90,000 60,000 90,000 80,000 60,000 90,000 90,000 Risk Classes and RADRs Risk-adjusted Risk class Description discount rate (RADR Lowest risk 10% Below-average risk 13 Average risk 15 Above-average risk 19 Highest risk a. Find the risk-adjusted NPV for each project b. Which project, if any, would you recommend that the firm undertake