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 The purpose/risk classes and preassigned required rates of return rate that has been preassigned to that purpose or risk class. The expected cash flows for these projects are given in the popup window, are shown in the popup window, Determine each project's risk-adjusted net present value What is the risk-adjusted NPV of project A? Data table PURPOSE Replacement decision Modification or expansion of existing product line Project unrelated to current operations Research and development operations Data table 4 PROJECT A Initial investment - $200,000 Cash inflows REQUIRED RATE OF RETURN Year 1 $100,000 PROJECT B - $380,000 $120,000 11% Year 2 30,000 120,000 15% Year 3 40,000 120,000 18% Year 4 90,000 120,000 20% Year 5 150,000 120,000