Question: I need to find the risk-adjusted present value for Project E, F, and G. Please show the work in Excel. Risk adjusted discount rates -Basic
I need to find the risk-adjusted present value for Project E, F, and G. Please show the work in Excel.

Risk adjusted discount rates -Basic Country Wallpapers s considering investing in one of three mutually exclusive projects, E F and G The firm's cost of capita r is 14.9%, and the risk-free rate, RF S 9.9%. The firm 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 j RADR R+RR) where Rf risk-free rate of returm, RI, - risk index for project j, 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 $3994.96. (Round to the nearest cent) The net present value for project Fis S 2034.03(Round to the nearest cent) The net present value for project G is S 1863.80 Round to the nearest cent.) Which project is preferred in this situation? (Select from the drop-down menu.) Project E with the highest NPV, is preferred b. The firm uses the following equation to determine the risk-adjusted discount rate, RADRfor each project j Data Table (Click on the icon located on the top-right comer of the data table below in order to copy its contents into a spreadsheet.) Project Initial investment (CFo) $14,600 $11,000 $18,200 RADR RR (-RF) where RE - risk-free rate of return, R,- risk index for project, andr cost of capital The RADR for project E is 18.75 % (Round to two decimal places) The RADR for projec The RADR for project G is 12.75 % (Round to two decimal places ) c. Use the RADR for each project to determine its risk-adjusted NPV The risk-adjusted net present value for project E is $1- (Round to the nearest cent) Year (t) Cash inflows (CF) $6,500 6,500 6,500 6,500 1.77 $6,400 4,400 4,700 1,800 0.98 $3,500 6,600 7.700 12,100 0.57 IF is 14.80 %. (Round to two decimal places.) Risk index (R Print Done
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