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(Risk-adjuste discount rates and nak ciposas) The G. Wolle Corporation is examining two captal-budgeting projects with 5-year lives. The first project A, is a replacement
(Risk-adjuste discount rates and nak ciposas) The G. Wolle Corporation is examining two captal-budgeting projects with 5-year lives. The first project A, is a replacement project; the second, project B, is a project unrelated to current operations. The G. Wolte Corporation uses the risk-adjusted discount rate method and groups projects Bccording to purpose, and then it uses a required rate of return or discount rate that has been preassigned to that purpose or mak class. The expected cash flows for these projects are given in the popup window, B. The purposeMiek dasses and presssigned required rates of return are shown in the popup window. Determine each project's risk-adjusted net present value. What is the risk-adjusted NPV of project A? s (Round to the nearest cent.) ) - X X Data table Data table (Click on the following icon in order to copy its contents into a spreadsheet.) PROJECT A - $200,000 PROJECT B $300,000 Inilial investment Cash inflaws: Yaar 1 1 Year 2 Year 3 Year 4 Year 5 (Click on the following icon in order to copy its corilens inlo a spreadsheel.) PURPOSE REQUIRED RATE OF RETURN Replacement decision 9% Modification or expansion of existing product line 15% Project unrelated to currani beralinis 18% Research and development operations 20% $120.000 40.000 30.000 90.000 100,000 $120,000 120,000 120,000 120,000 120,000 Print Done Print Done
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