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( Risk - adjusted NPV ) The Hokie Corporation is considering two mutually exclusive projects. Both require an initial outlay of $ 1 5 ,
Riskadjusted NPV The Hokie Corporation is considering two mutually exclusive projects. Both require an initial outlay
of $ and will operate for years. Project A will produce expected cash flows of $ per year for years
through whereas project will produce expected cash flows of $ per year for years through Because project
is the riskier of the two projects, the management of Hokie Corporation has decided to apply a required rate of return
of percent to its evaluation but only a required rate of return percent to project A Determine each project's risk
adjusted net present value.
What is the riskadjusted NPV of project A
Round to the nearest cent.
What is the riskadjusted NPV of project B
Round to the nearest cent.
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