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 is in dass 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? a. The net present value for project Xiss (Round to the nearest cent) Enter your answer in the answer box and then click Check Answer 3 parts remaining Clear All Check Answer Risk classes and RADR Mo lives, they possess differing de III, the average-risk class. The following tables 7h all the projects have 5-year X ass, and project is in class by the firm are shown in the Data Table a. Find the risk-adjusted NPV b. Which project, if any, would a. The net present value for pe (Click on the icon here in order to copy the contents of the data table below into a spreadsheet) Project X Project Y Project Z Initial investment (CF) 5183 000 5232,000 5306,000 Year) Cash inflows (CF) 580 000 $50 000 $86,000 2 69,000 61,000 86000 3 63.000 72.000 86.000 4 61.000 90.000 86,000 5 61,000 97.000 86,000 Risk Class II III IV V Risk Classes and RADRS Description Risk adjusted discount rate (RADR) Lowest risk 10.8% Below-average risk 140 Average risk 162 Above-average risk 20.1 Highest risk 23.3 Print Done Enter your answer in the ans 3 parts remaining Clear All Check