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

Project X	Project Y	Project Z
Initial investment (CF0)	$185,000	$230,000	$310,000
Year (t )	Cash inflows (CFt)
1	$84,000	$56,000	$85,000
2	71,000	61,000	85,000
3	64,000	76,000	85,000
4	64,000	86,000	85,000
5	65,000	95,000	85,000

Risk Classes and RADRs
Risk Class	Description	Risk adjusted discount rate (RADR)
I	Lowest risk	10.3%
II	Below-average risk	13.2
III	Average risk	15.0
IV	Above-average risk	19.1
V	Highest risk	22.0

.

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 $nothing. (Round to the nearest cent.)