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PLEASE MAKE SURE TO SOLVE FOR PROJECT A AS WELL AS PROJECT B FOR THE SECOND PART OF THE QUESTION. (Risk-adjusted discount rates and risk

PLEASE MAKE SURE TO SOLVE FOR PROJECT A AS WELL AS PROJECT B FOR THE SECOND PART OF THE QUESTION. image text in transcribed
(Risk-adjusted discount rates and risk classes) The G. Wolfe Corporation is examining two capital-budgeting projects with 5-year lives. The first, project A, is a replacement project; the second, project B, is a project unrelated to current operations. The G. Wolfe Corporation uses the risk-adjusted discount rate method and groups projects according to purpose, and then it uses a required rate of return or discount rate that has been preassigned to that purpose or risk class. The expected cash flows for these projects are given in the popup window, II. The purpose/risk classes and preassigned required rates of return are shown in the popup window, Determine each project's risk-adjusted net present value. What is the risk-adjusted NPV of project A? Data Table $ (Round to the nearest cent.) (Click on the following icon in order to copy its contents PROJECT A - $200,000 19% 19 Initial investment Cash inflows: Year 1 Year 2 Year 3 Year 4 Year 5 $120,000 120,000 $140,000 20,000 40.000 70,000 120,000 Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) PURPOSE REQUIRED RATE OF RETURN 11% Replacement decision Modification or expansion of existing product line Project unrelated to current operations Research and development operations Enter your answer in the answer box and the 1 part remaining

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