David Ding is evaluating two conventional independent capitalbudgeting projects (X and Y) by making use of the risk-adjusteddiscount rate (RADR) method of analysis. Projects X and Y haveinternal rates of return of 16 percent and 12 percentrespectively. The RADR appropriate to Project X is 18 percentwhile Project Ys RADR is only 10 percent. The companys overallweighted-average cost of capital is 14 percent. David should.