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. Data Table 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 ce (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) $183,000 $232,000 $308,000 Year (1) Cash inflows (CF) $77,000 $54,000 $92,000 2 71,000 66,000 92.000 3 55,000 78,000 92,000 57,000 81,000 92,000 5 62,000 100,000 92,000 1 4 Risk Class II III IV V Risk Classes and RADRS Description Risk adjusted discount rate (RADR) Lowest risk 10.7% Below average risk 13.9 Average risk 16.0 Above-average risk 20.1 Highest risk 23.3