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 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 intlow 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 $164.000 project provides the following inflows with the associated coefficients of variation for each year. Year 1 I Inflow 331,700 56,500 25,000 62, 100 62,800 Coefficient of Variation 0.12 0.25 0.51 0.75 1.07 3 4 5 Use Arrendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods Use Annandix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. o. Fill in the table below. (Do not round Intermediate calculations. Round "Adjustment Foctor" answers to 2 decimal places and other answers to the nearest whole dollar) Year 1 Adjustment Factor Adjusted Inflow 2 3 4 5 -1. If the risk-free rate is 4 percent, compute the net present value of the adjusted inflows. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places.) Net present value