Parts A,B

13 of 16 (12 complete) HW Score: 58.2%, 9.31 of 16 pts Score: 0 of 1 pt P11-28 (similar to) Question Help O 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 ? a. Find the risk-adjusted NPV for each project. b. Which project, if any, would you recommend that the firm undertake? a. The net present value for project X is 5 (Round to the nearest cent.) P11-28 (similar to) Question Help - A O X Data Table Risk classes and RADR Moses Manufacturing is att V, the highest-risk class, project Y is in class II, the bel used by the firm are shown in the following tables r lives, they possess differing degrees of risk. Project X is in class ject and the risk classes and risk-adjusted discount rates (RADRs) in order to copy the contents of the data table below into a (Click on the icon here spreadsheet.) a. Find the risk-adjusted NPV for each project. b. Which project, if any, would you recommend that the Project X $185,000 Project Z $314,000 Initial investment (CF) Year (t) a. The net present value for project X is $ (Round $82,000 73,000 57,000 59,000 55,000 Project Y $238,000 Cash inflows (CF) $55,000 69,000 79,000 89,000 98,000 $88,000 88,000 88,000 88,000 88,000 Risk Class Risk Classes and RADRs Description Risk adjusted discount rate (RADR) Lowest risk 10.9% Below-average risk 14.1 Average risk 16.0 Above-average risk 19.8 Highest risk 23.0