please include formulas

Risk-free rate 7% a) Complete the table . Risk PV of risk adjustment Risk adjusted adjusted 9 Time Cash flow factor cash flow cash flow 10 0 ($15,000) 1.00 (15,000) (15,000 11 1 5,000 0.94 4,700 4,392.52 12 2 5,000 0.88 4,400 3,843.13 13 3 5,000 0.82 4,100 3,346.82 14 4 5,000 0.76 3,800 2,899.00 15 5 5,000 0.70 3,500 2,495.45 16 17 a) Using the certainty-equivalent approach, determine the net present value of the investment (NPV of the risk adjustment cash flows) 18 19 NPV 20 21 b) Given the answer of the certainty-equivalent approach, what would be the risk premium needed to adjust the risk free rate? 22 Hint: Use Goal Seek (Data -> What If Analysis -> Goal Seek) 23 24 NPV $10,000.00 25 Certainty Equivalent Adjusted Rate 26 Risk premium -7.00% 27 28 29 30 31 32 33 34 35