Risk-adjusted discount rates ---Tabular After a careful evaluation of investment alternatives and opportunities, Masters School Supplies has developed a CAPM-type relationship linking a risk index to the required return (RADR), as shown in the table. The firm is considering two mutually exclusive projects, A and B. Following are the data the firm has been able to gather about the projects. Project A $21,000 7 years $6.900 0.4 Initial investment (CF) Project life Annual cash inflow (CF) Risk index A Data Table Project B $32,000 7 years S10,500 1.6 All the firm's cash flows for each project have already been adjusted for taxes. a. Evaluate the projects using risk-adjusted discount rales. b. Discuss your findings in part (a), and recommend the preferred project. a. The net present value for project Ais $. (Round to the nearest cent.) The net present value for project Bis $. (Round to the nearest cent.) b. Discuss your findings in part (a), and recommend the preferred project. (Select from the drop-down menus.) Project is preferable to Project since the NPV of V is greater than the NPV of Risk index 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 Required return (RADR) 6.9% (risk-free rate, RF) 7.8 8.7 9.6 10.5 11,4 12.3 13.2 14.1 15.0 15,9 B A Print Done Enter your answer in each of the answer boxes