Risk-adjusted discount ratesTabular 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 B. 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 $20,000 Initial investment (CF) Project life Annual cash inflow (CF) Risk index 8 years $8,000 0.2 Project B $30,000 8 years $9,100 1.4 All the firm's cash flows for each project have already been adjusted for taxes. a. Evaluate the projects using risk-adjusted discount rates. b. Discuss your findings in part (a), and recommend the preferred project. a. The net present value for project A is $ . (Round to the nearest cent.) The net present value for project B is $ . (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 6, since the NPV Of is greater than the NPV of C. Risk index 0.0 Required return (RADR) 7.1% (risk-free rate, RF) 0.2 0.4 0.6 0.8 1.0 7.9 8.7 9.5 10.3 11.1 11.9 12.7 13.5 14.3 15.1 1.2. 1.4 1.6 1.8 2.0