what are the risk adjusted NPV's for each project? part C

Score: 0 of 1 pt 12 of 16 (12 complete) HW Score: 54.55%, 8.73 of 16 pts X P11-24 (similar to) Question Help Risk-adjusted discount ratesBasic Country Wallpapers is considering investing in one of three mutually exclusive projects, E, F, and G. The firm's cost of capital, r, is 15.2%, and the risk-free rate, Rr, is 10.4%. The firm has gathered the following basic cash flow and risk index data for each project a. Find the net present value (NPV) of each project using the firm's cost of capital. Which project is preferred in this situation? b. The firm uses the following equation to determine the risk-adjusted discount rate, RADR, for each project : RADR;=R+Rl;* (r-R) where Re = risk-free rate of return, RI; = risk index for project, and r = cost of capital. Substitute each project's risk index into this equation to determine its RADR. c. Use the RADR for each project to determine its risk-adjusted NPV. Which project is preferable in this situation? d. Compare and discuss your findings in parts (a) and (c). Which project do you recommend that the firm accept? a. Find the net present value (NPV) of each project using the firm's cost of capital. The net present value for project E is $ (Round to the nearest cent.) Risk-adjusted discount ratesBasic Country Wallpapers is considering investing in one of three mutually exclusive projects, E, F, and G. The firm's cost of capital, r, is 15.2%, and the risk-free rate, RF, IS 10.4%. The firm has gathered the following basic cash flow and risk index data for e a. Find the net present value (NPV) of each project using the fin 0 Data Table b. The firm uses the following equation to determine the risk-ad in order to copy the contents of the data table below into a (Click on the icon here spreadsheet.) RADR; = RE+RI* (r-RF where Re = risk-free rate of return, RI; = risk index for project Substitute each project's risk index into this equation to determi c. Use the RADR for each project to determine its risk-adjusted d. Compare and discuss your findings in parts (a) and (c). Whil E $15,500 Initial investment (CF) Year(t) a. Find the net present value (NPV) of each project using the fid The net present value for project is $ (Round to the near Project (0) G $11,000 $19,600 Cash inflows (CFt) $5,900 $4,100 4,200 5,300 8,300 2,400 12,300 0.64 $5,500 5,500 5,500 5,500 1.79 6,700 Risk index (RI) 0.96 Print Done Enter vour answer in the answer box and then click Check