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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
Risk classes and RADR Moses Manufacturing is attempting to select the best of three mutually exclusive projects, and Although all the projects have year lives, they possess differing degrees of risk. Project is the most risky; Project is in the least risky; and Project is in between. The basic cash flow data for each project and the riskadjusted discount rates RADRs used by the firm are shown in the following table
a Find the riskadjusted NPV for each project.
b Which project, if any, would you recommend that the firm undertake?
a The net present value for project is $
Round to the nearest cent.
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