The Wolf company is examining two capital-budgeting projects with 5-year lives.

The Wolf company is examining two capital-budgeting projects with 5-year lives. The first project A is a replacement project; the second project B is a project unrelated to current operations. The Wolf Company uses the risk-adjusted discount rate method and groups projects according to purpose and then uses a required rate of return or discount rate that has been preassigned to the purpose or risk class. The expected cash flows for these projects are as follows: Project A Project B Initial Investment: 250000 400000Cash flows: Year 1 35000 134000Year 2 40000 134000Year 3 50000 134000Year 4 90000 134000Year 5 130000 134000The purpose or risk classes and preassigned required rates of return are as follows: Purpose Required Rate of Return Replacement decision 12% 12%Modification or expansion of existing product line 15% 15%Project unrelated to current operations 18% 18%research and development operations 20% 20%Determine the projects risk-adjusted net present value.