The drop-down menu options are X/Y and X/Y

Thank you in advance!

P.S. Please use the zoom feature on Google Chrome to see the question more closely. Alternatively, you can save the photo by right-clicking and it will be very clear and easy to see. For some reason Chegg uploads pictures like this and it is annoying. I am sorry. :(

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 12.4%, 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 X Project Y o Initial investment (CF) $68,000 $82,000 Year (t) Cash inflows (CF) $35,000 $21,000 35,000 29,000 35,000 42,000 35,000 47,000 AWN 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 1.22 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 project return for each: r= Rs+bx (im - RF) a. The risk-adjusted discount rate for project X will be %. (Round to two decimal places.) The risk-adjusted discount rate for project Y will be %. (Round to two decimal places.) The net present value for project X is $ . (Round to the nearest cent.) The net present value for project Y is 57. (Round to the nearest cent.) b. Discuss your findings in part (a), and recommend the preferred project. (Select from the drop-down menus.) The RADR approach prefers project over project . The RADR approach combines the risk adjustment and the time adjustment in a single value. The RADR approach is most often used in business