The firm is considering two mutually exclusive projects, A and B. 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 Following are the data the firm has been able to gather about the projects. Project A Project B Initial investment (CF) $20,000 $27,000 Project life 5 years Annual cash inflow (CF) $6,200 $10,000 Risk index 0.2 1.6 5 years 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. x Data Table Risk index 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0 Required return (RADR) 6.7% (risk-free rate, RF) 7.6 8.5 9.4 10.3 11.2 12.1 13.0 13.9 14.8 15.7 Print Done a. The net present value for project A is $ (Round to the nearest cent.) The net present value for project Bis S (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 since the NPV of is greater than the NPV of A or B