16. General Motors is considering undertaking an investment project in a new electric car called Priw (stands for "Prius-wannabe"). The cost of the initial investment is $8 million in year zero. The project then yields the following expected cash flows (in millions): Year 1: $0 Year 2: $2.2 Year 3: $7.9 Year 4: $7 Suppose that the risk-free rate is equal to 5%, and that the expected return on the market portfolio is equal to 12%. How large is the project net present value? I do not want to answer this question Greater than $1m and less than or equal to $2m Greater than $2m and less than or equal to $3m Lower than or equal to $1m Greater than $4m Greater than $3m and less than or equal to S4m