Sheila Goodman recently received her MBA from the Harvard Business School. She has joined the family business, Goodman Software Products Inc., as Vice-President of Finance. She believes in adjusting projects for risk. Her father is somewhat skeptical but agrees to go along with her. Her approach is somewhat different than the risk-adjusted discount rate approach, but achieves the same objective. She suggests that the inflows for each year of a project be adjusted downward for lack of certainty and then be discounted back at a risk-free rate. The theory is that the adjustment penalty makes the inflows the equivalent of riskless inflows, and therefore a risk-free rate is justified. A table showing the possible coefficient of variation for an inflow and the associated adjustment factor is shown next: Coefficient of Variation 0 - 0.25 0.26 - 0.50 0.51 -0.75 0.76 - 1.00 1.01 - 1.25 Adjustment Factor 0.90 0.80 0.70 0.60 0.50 Assume a $173,000 project provides the following inflows with the associated coefficients of variation for each year. Coefficient of Variation 0.11 0.24 Year 1 2 3 4 5 Inflow $39,600 56,500 79,700 61,700 61,700 0.55 0.79 1.04 Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. Fill in the table below: (Do not round intermediate calculations. Round "Adjustment Factor" answers to 2 decimal places and other answers to the nearest whole dollar.) Year Adjustment Factor Adjusted Inflow 1 2. 3 4 5