The G. Wolfe Corporation is examining two capital-budgeting projects with 5-year lives. The first, project A, is a replacement project; the second, project B, is a project unrelated to current operations. The G. Wolfe Corporation uses the risk-adjusted discount rate method and groups projects according to purpose, and then it uses a required rate of return or discount rate that has been preassigned to that purpose or risk class. The expected cash flows for these projects are given in the popup window, The purpose/risk classes and preassigned required rates of return are shown in the popup window. Determine each project's risk-adjusted net present value.

What is the risk-adjusted NPV of project A?

(Risk-adjusted discount rates and risk classes) The G. Wolfe Corporation is examining two capital-budgeting projects with 5-year lives. The first, project A, is a replacement project, the second, project B, is a project unrelated to current operations. The G. Wolfe Corporation uses the risk-adjusted discount rate method and groups projects according to purpose, and then it uses a required rate of return or discount rate that has been preassigned to that purpose or risk class. The expected cash flows for these projects are given in the popup window,. The purpose/risk classes and preassigned required rates of return are shown in the popup window EEB. Determine each project's risk-adjusted net present value What is the risk-adjusted NPV of project A? S(Round to the nearest cent.) Data Table PROJECTA - $200,000 PROJECT B $340,000 Initial investment Cash inflows Year 1 Year 2 Year 3 Year 4 Year 5 (Click on the icon located on the top-right corner of the data table above in order to copy its contents into a spreadsheet.) $110,000 20,000 30,000 90,000 150,000 $100,000 100,000 100,000 100,000 100,000 PrintDone Data Table PURPOSE Replacement decision Modification or expansion of existing product line Project unrelated to current operations Research and development operati (Click on the icon located on the top-right corner of the data table above in order to copy its contents into a spreadsheet.) REQUIRED RATE OF RETURN 15% 18% 20% Print Done