Risk-adjusted discount rates-Basic Country Wallpapers is considering investing in one of three mutually exclusive projects, E. F and G The fim's cost of capital, r is 15 5%, and the risk-free rate RF is 10 3% 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, for each project j where Rf risk-free rate of return, Ri, risk index for project andr cost of capital c. Use the RADR for each project to determine its nisk-adjusted NPV Which project is preferable in this sktuation? d. Compare and discuss your findings in parts (a) and (c) Which project do you recommend that the firm accept? a. Find the net present value (NPV) of each project using the firm's cost of capital Project () Initial investment (CFo) $14,900 $11,000 $19,500 Year (t) Cash inflows (CFt) S6.100 6,100 6,100 6,100 1.75 $6.200 3,800 4.500 1.800 0.99 S3,500 5,600 8,200 12.900 0.65 4 Risk index (RI)