(Risk- adjusted discount rates and risk classes) The G. Wolfe Corporation is examining two capital-budgeting projects with 5-year lives. The firs, 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, and then it users 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 here:

	Project A	Project B
Initial investment	-$250,000	-$400,000
Cash inflows:
Year 1	$130,000	$135,000
Year 2	40,000	135,000
Year 3	50,000	135,000
Year 4	90,000	135,000
Year 5	130,000	135,000

The purpose/risk classes and preassigned required rates of return are as follows:

Purpose	Required rate of return
Replacement decision	12%
Modification or expansion of existing product line	15
Project unrelated to current operations	18
Research and development operations	20

Determine each projects risk-adjusted net present value.