Question Help Risk classes and RADR Moses Manufacturing is attempting to select the best of three mutually exclusive projects, X, Y, and Z. Although all the projects have 5-year lives, they possess differing degrees of risk. Project X is in class V, the highest-risk dass; project Y is in class II, the below-average-risk class; and project Z is in class III, the average-risk class. The basic cash flow data for each project and the risk classes and risk-adjusted discount rates (RADRs) used by the firm are shown in the following tables. A Data Table a. Find the risk-adjusted NPV for each project. b. Which project, if any, would you recommend that the firm undertake? a. The net present value for project X is $. (Round to the nearest cent.) (Click on the icon located on the top-right comer of the data table below in order to copy its contents into a spreadsheet.) The net present value for project is $. (Round to the nearest cent.) The net present value for project Z is $ - (Round to the nearest cent) Project X $181,000 Project Z $309.000 b. Which project, if any, would you recommend that the firm undertake? Rank the projects below. (Only the project with the highest positive NPV should be considered.) (Select from the drop-down menus.) Initial investment (CF) Year() 1 2 3 4 5 Project Y $ $237,000 Cash inflows (CF) $57,000 66,000 78,000 89,000 98,000 First: $85.000 65,000 57,000 85.000 57.000 Project $87,000 87,000 87,000 87,000 87,000 7 Second: Project Third: Project Risk Class II III IV V Risk Classes and RADRS Description Risk adjusted discount rate (RADR) Lowest risk 10.9% Below-average risk 13.8 Average risk 15.6 Above average risk 19.7 Highest risk 22.6 Enter your answer in each of the answer boxes. Print Done