Risk classes and RADR Moses Manufacturing is attempting to select the best of three mutually exclusive projects, X, Y, and Z. Although all the projects have 5-year lives, they possess differing degrees of risk. Project X is in class V, the highest-risk class; project Y is in class II, the below-average-risk class; and project Z is in class III, the average-risk class. The basic cash flow data for each project and the risk classes and risk-adjusted discount rates (RADRs) used by the firm are shown in the following tables. a. Find the risk-adjusted NPV for each project. b. Which project, if any, would you recommend that the firm undertake? i Data Table a. The net present value for project X is $ (Round to the nearest cent.) Enter your answer in the answer box and then click Check Answer. 3 parts remaining (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Initial investment (CFO) Year (t) Project X $185,000 Project Y $231,000 Cash inflows (CFt) Project Z $314,000 1 $77,000 $59,000 $88,000 2345 72,000 64,000 88,000 63,000 79,000 88,000 63,000 80,000 88,000 57,000 91,000 88,000 Risk Classes and RADRs Risk Class Description Risk adjusted discount rate (RADR) | Lowest risk ==>> IV Highest risk Below-average risk Average risk Above-average risk 10.8% 13.6 15.5 19.4 22.2 ?