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Risk classes and RADR Moses Manufacturing is attempting to select the best of three mutually exclusive projects. XY and Z. Although all the projects have

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Risk classes and RADR Moses Manufacturing is attempting to select the best of three mutually exclusive projects. XY and Z. Although all the projects have 5-year lives, they possess differing degrees of risk Project Xis in class V, the highest-risk class, project is in class II, the below-average-risk class, and project Z is in class w the averagetisk 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 en 1. Find the risk adjusted NPV for each project b. Which project. Wany wodd you recommend that the frm undertake? a. The not present value for project X is $(Roond to the nearest cont.) The rat persent value for project is S Round to the nearest cant) The not present value for project Zia $ (Round to the nearest cent) b. Which project. It any, would you recommend that the firm undertake? Rank the projects below. Only the project with the highest positive NPV should be considered (Select troen the drop-down menus) Flest Pred Project Second Theo Project NPV (Click on the icon here in order to copy the contents of the data table below into a would spreadsheet.) rue for pro Project X Project Y Project Z Initial investment (CF) $184.000 $233,000 $313,000 for proje Year (0) Cash inflows (CF) nue for proje $75,000 558.000 $95.000 70,000 68.000 95.000 any, would 55.000 78,000 95,000 63,000 82.000 95.000 below. (Only 55 000 91.000 95.000 Project Risk Classes and RADRs Project Risk Class Description Risk adjusted discount rate (RADR) Lowest risk 10.6% Project Below average risk 135 Average risk 154 Above-average risk Highest risk 222 193 IV V Pant Done

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