percent The proc e ss the theolog o s Amis conde determine the most n a a proact which seebed below The cost of capital is 18 percent and the funned docare a ROR for each project RAORR Rack Index (Cast it capital - R Year Cash 200 000 OA 5 percent con e is pret oo percent Table 12.2 A firm is considering investment in a capital project which is described determine the risk adjusted discount rate, RADR, for each project: RAD Initial Investment $1,000,000 Year Cash Inflow 1 $500,000 2 500,000 3 500,000 O A. 6 percent O B. 24 percent O C. 15 percent OD. 18 percent in a capital project which is described below The firm's cost of capital is 18 percent and the risk-free rate is 6 percent. The project has a risk index of 1.5. The firm uses the following equation to count rate, RADR, for each project: RADR = R1 + Risk Index (Cost of capital - RN) 300 000