Problem 2: Risk-Adjusted Discount Rates (10 points) HPC is considering two mutually exclusive capital budgeting projects. HPC uses a CAPM-type risk-adjusted discount rate. HPC's WACC is 12% and the risk-free rate is 4%. Information on each project is as follows: a. Ignore risk differences. Calculate the NPV of each project based on the firm's cost of capital for average-risk projects. Based on your calculations, which project would you recommend? b. Use NPV to evaluate the projects, using risk-adjusted discount rates (RADRs) to account for risk. Based on your calculations, which project would you recommend? c. Compare, contrast, and explain your findings in parts a and b