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 have5-yearlives, 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

	Project X	Project Y	Project Z
Initial Investment (CF0)	179000	237000	314000
Year (t)		Cash inflows
1	76000	60000	85000
2	69000	69000	85000
3	55000	79000	85000
4	59000	84000	85000
5	61000	95000	85000

Risk Classes and RADRs
Risk Class	Description	Risk adjusted discount rate (RADR)
I	Lowest risk	10.7 %

II	Below-average risk	13.6
III	Average risk	15.7
IV	Above-average risk	19.6
V	Highest risk	22.5

a. Find the risk-adjusted NPV for each project.

b. Which project, if any, would you recommend that the firm undertake?