The Mosco Manufacture is attempting to select the best three mutually exclusive projects, X, Y, and Z. Although all the projects have 5-year lives, they possess differing degrees of risk. Project X is in class of the highest risk class; project Y isthe below-average-risk class; project Z is in class of the average-risk class. The basic cash flow data for each project are in follow table and the risk classes and risk-adjusted discount rate (RADR) used by the firm arebelow average is 13% , average risk is 15% andhighest risk is 22%.

Project X

Project Y

Project Z

Initial Investment

-180,000

-$235,000

-$310,000

Year (t)

Cash flows

Cash flows

Cash flow

1

80,000

50,000

90,000

2

70,000

60,000

90,000

3

60,000

70,000

90,000

4

60,000

80,000

90,000

5

60,000

90,000

90,000

a) Find the Risk-adjusted NPV for each

b) Which project, if any, would you recommend that the firm undertake

Don't show the excel method please, need to see how it's done