Risk-adjusted rates of return using CAPM Centennial Catering, Inc., is considering two mutually exclusive investments. The company wishes to use a CAPM-type risk-adjusted discount rate (RADR) in its analysis. Centennial's managers believe that the appropriate market rate of return is 12.1%, and they observe that the current risk-free rate of return is 6.7%. Cash flows associated with the two projects are shown in the following table. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Project Y D Project X $67,000 $78,000 Initial investment (CF) Year (t) 1 $32,000 $22,000 32,000 2 32,000 3 32,000 38,000 4 32,000 43.000 a. Use a risk-adjusted discount rate approach to calculate the net present value of each project, given that project X has an RADR factor of 1.18 and project Y has an RADR factor of 1.36. The RADR factors are similar to project betas. (Hint: Use the following equation to calculate the required proiect return for each r= R + bx (r-R-)) -C a. The risk-adjusted discount rate for project X will be %. (Round to two decimal places.) Cash inflows (CF)