Year	Net Cash flow ($)	PVIF	PV ($)
1	2569000	0.865469365	2223391
2	3220000	0.749037221	2411900
3	3220000	0.648269768	2087425
4	3220000	0.561056759	1806603
5	3220000	0.485577437	1563559
6	3220000	0.420252396	1353213
7	3220000	0.363715574	1171164
8	3220000	0.314784687	1013607
9	3220000	0.272436503	877246
10	3220000	0.235785447	759229
11	3220000	0.204065081	657090
12	3220000	0.176612076	568691
13	3220000	0.152852341	492185
14	3220000	0.132289019	425971
15	3220000	0.114492093	368665
16	3220000	0.099089399	319068
17	3220000	0.085758839	276143
18	3220000	0.074221648	238994
19	3220000	0.064236563	206842
20	3220000	0.055594777	179015

PV=$18,999,999

Project Cost: $19,000,000

Internal Rate of Return: $15.54424%

Use a 4.5% higher discount rate for the RADF method

CECF Approach:

Year 1:96%	Year 11:39%
Year 2:91%	Year 12:33%
Year 3:85%	Year 13:29%
Year 4:79%	Year 14:26%
Year 5:74%	Year 15:23%
Year 6:68%	Year 16:20%
Year 7:62%	Year 17:18%
Year 8:56%	Year 18:1 5%
Year 9:50%	Year 19:13%
Year 10:45%	Year 20:12%

Other information: APR: 8.25% Equity:15% (regular Projects) Debt:48%: Equity:52%

Question

1. Using the risk adjusted discount rate, assess the attractiveness of the project.

2. Using the certainty equivalent cash flow approach, assess the attractiveness of the project.

3. Do either of the adjustments change the decision? What would you recommend to the company?