Please help with questions A, B.

Risk-adjusted discount ratesTabular After a careful evaluation of investment alternatives and opportunities, Masters School Supplies has developed a CAPM-type relationship linking a risk index to the required return (RADR), as shown in the table. The firm is considering two mutually exclusive projects, A and B. Following are the data the firm has been able to gather about the projects. Initial investment (CF) Project life Annual cash inflow (CF) Risk index Project A $20,000 6 years $6,500 0.4 Project B S27,000 6 years S10,300 1.4 i Data Table All the firm's cash flows for each project have already been adjusted for taxes a. Evaluate the projects using nisk-adjusted discount rates. b. Discuss your findings in part (a), and recommend the preferred project. a. The net present value for project A is (Round to the nearest cent.) Risk index 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 Required return (RADR) 6.6% (risk-free rate. RF) 7.8 9.0 10.2 11.4 12.6 13.8 15.0 16.2 17.4 18.6 Print Done Enter your answer in the answer box and then click Check