Question: No handwritten please. answer clearly Question Help Risk-adjusted discount rates-Basic Country Wallpapers is considering investing in one of three mutually exclusive projects, E, F, and

Question Help Risk-adjusted discount rates-Basic Country Wallpapers is considering investing in one of three mutually exclusive projects, E, F, and G. The firm's cost of capital, r.is 15.1%, and the risk-free rate, Reis 9.9%. The firm has gathered the following basic cash flow and risk index data for each project a. Find the not 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-RE+ RI* (r-RF) where Rp = risk-free rate of return, Rly = risk index for project, and r = cist 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 prosent value (NPV) of each project using the fem's cost of capital, Press Continue to see more 14 parts remaining Continue es ra i Data Table hd G. The w RA (Click on the icon here spreadsheet.) in order to copy the contents of the data table below into a ret ir oj ar Initial investment (CF) Year (0) E $15,800 1 Project (/) F G $11,000 $18,100 Cash inflows (CF) $5,500 $3,600 4,500 5,900 5,300 7,000 1,500 12,900 1.02 0.62 $5,600 5,600 5,600 5,600 1.82 AN Risk index (RI) Print Done Contir
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