?Risk-adjusted discount ratesBasic

Country Wallpapers is considering investing in one of three mutually exclusive? projects, E,? F, and G. The? firm's cost of? capital, r ?, is 15.2%?,and the? risk-free rate, R_F?, is 9.7%. The firm has gathered the following basic cash flow and risk index data for each project

a. Find the net present value (NPV?) of each project using the? firm's cost of capital. Which project is preferred in this? situation?

b. The firm uses the following equation to determine the? risk-adjusted discount? rate, RADR_{J ,} for each project j ?:

RADRj=RF+RIj(r?RF)

where

RF ?= risk-free rate of? return, RIj ?= risk index for project j ?, and r ?= cost of capital.

c. Use the RADR for each project to determine its ?risk-adjusted NPV. Which project is preferable in this? situation?

d. Compare and discuss your findings in parts ?(a?) and ?(c?). Which project do you recommend that the firm? accept?

NEED HELP PLEASE, THANK YOU!

https://www.mathil.co Homework.aspx?homeworkld = 3860362 53&questionid= 1 1 &flushed= true&cid=4 1 26784¢erwin=yes Click on the icon located on the top-right corner of the data table below in order to copy its ontents into a spreadsheet.) Project (j) Initial investment (CFo $14,300 $11,000 $19,300 Year (t) Cash inflows (CFt) 2 3 4 Risk index (RI;) $6,000 6,000 6,000 6,000 1.81 $5,500 3,900 4,800 1,700 0.96 $3,900 6,100 8,000 12,500 0.65 12:06 PM 10 14/2016