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( Risk - adjusted discount rates and risk classes ) The G . Wolfe Corporation is examining two capital - budgeting projects with 5 -

(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,
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?
$ (Round to the nearest cent.)
What is the risk-adjusted NPV of project B?
(Round to the nearest cent.)
(Click on the following icon in order to copy its contents into a spreadsheet.)
\table[[,PROJECT A,PROJECT B],[Initial investment,-$280,000,-$400,000
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