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 different degrees of risk. Project X is class V, the highest risk class; project Y is II, the below average risk class; and project Z is class III, the average risk class. The basic cash flow data for each project and risk class and risk adjustment discount rates (RADRs) used by the firm are shown in the following tables.

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

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