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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
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 the most risky; Project Y is in the least risky; and Project Z is in between. The basic cash flow data for each project and the risk-adjusted discount rates (RADRs) used by the firm are shown in the following table 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 X is $ (Round to the nearest cent.) Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.)
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