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Risk-adjusted discount rates-Basic Country Wallpapers is considering investing in one of three meally exclusve projects, E, F, and G. The firm's cost of capital... 14,9%,

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Risk-adjusted discount rates-Basic Country Wallpapers is considering investing in one of three meally exclusve projects, E, F, and G. The firm's cost of capital... 14,9%, and therefore, R. 10.2% The firm has gathered the following basic cash flow and risk index data for each project a. Find the net presentave (NPV) of each project using the firm's cost of capital. Which project is preferred in this salon? b. The form uses the following equation to determine the risk-adjusted discountRADR, for each project RADR-R+R* (R) where Ry risk free rate of retum, Rinisk index for project and cost of capital Substitute each project's risk index into this equation to determine RADR c. Use the RADR for each project to determine isikusted NPV. Which project is preferable in this station? d. Compare and discuss your findings in parts (a) and (c) Which project do you recommend that the firm accept? (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Project ( ) E F G Initial investment (CF) $14,200 $11,000 $18.800 Year (t) Cash inflows (CF) 1 $6,400 $5,600 $3,600 2 6,400 4,400 6.100 3 6,400 4,800 7,800 4 6,400 1,600 11,300 1.82 0.96 0.63 Risk index (RI)

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