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Shella Goodman recently received her MBA from the Harvard Business School. She has joined the family business, Goodman Software Products Inc., as Vice-President of Finance. She believes in adjusting projects for risk. Her father is somewhat skeptical but agrees to go along with her. Her approach is somewhat different than the risk-adjusted discount rate approach, but achieves the same objective She suggests that the inflows for each year of a project be adjusted downward for lack of certainty and then be discounted back at a risk-free rate. The theory is that the adjustment penalty makes the inflows the equivalent of riskless inflows, and therefore a risk-free rate is justified A table showing the possible coefficient of variation for an inflow and the associated adjustment factor is shown next Coeficient or Adjustment Variation Factor -0.25 0.26 -0.50 0.51 -0.75 0.76 - 1.00 1.01 - 1.25 0.90 0.80 0.70 0.60 0.50 Assume a $160,000 project provides the following inflows with the associated coefficients of variation for each year, Year 1 2 3 Inflow $30,700 50.300 76,900 61,900 66,60 Coefficient of Variation 0.10 0.22 0.42 0.72 1.03 5 Use Anvendix 3 for an approximate answer but calculate your final answer using the formula and financial calculator methods Fill in the table below: (Do not round intermediate calculations, Round "Adjustment Factor answers to 2 decimal places and other answers to the nearest whole dollar) Year Adjustment Factor Adjusted intow 1 Use Appendix 3 for an approximate answer but calculate your final answer using the formula and financial calculator methods a. Fill in the table below: (Do not round Intermediate calculations. Round "Adjustment Factor answers to 2 decimal places and other answers to the nearest whole dollar) Ant Factor Adjusted now 1 2 3 4 5 b-1. If the risk-free rate is 6 percent, compute the net present value of the adjusted inflows. (Negative amount should be indicated by a minus sign, Do not round Intermediate calculations and round your answer to 2 decimal places.) b-2. Should this project be accepted? No Y