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? a. The net present value for project X is $ . (Round to the nearest cent.) Data Table (Click on the icon here spreadsheet.) in order to copy the contents of the data table below into a Project x $177,000 Project Z $308,000 Initial investment (CF) Year (t) - $81,000 73,000 55,000 56,000 65,000 Project Y $236,000 Cash inflows (CF) $58,000 60,000 70,000 90,000 95,000 $92,000 92,000 92,000 92,000 92,000 LO Risk Class - = Risk Classes and RADRs Description Risk adjusted discount rate (RADR) Lowest risk 10.6% Below-average risk 13.4 Average risk 15.3 Above-average risk 19.4 Highest risk 22.2