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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.
Data table
(Click on the following icon in order to copy its contents into a spreadsheet.)
What is the risk-adjusted NPV of project A?
(Round to the nearest cent.)
Data table
(Click on the following icon in order to copy its contents into a spreadsheet.)
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