A firm is considering investment in a capital project which is described below. The firm's cost of capital is 18 percent and the risk-free rate is 6 percent. The project has a risk index of 1.5. The firm uses the following equation to determine the risk adjusted discount rate, RADR, for each project: RADR = Rf + Risk Index x (Cost of capital - Rf). For each of the below questions, please show how you arrived at your answer.

Initial Investment	1,000,000.
Year	Cash Inflow
1	$500,000
2	500,000
3	500,000

21) The net present value without adjusting the discount rate for risk is ________.

22)The discount rate that should be used in the net present value calculation to compensate for risk is ________.

23)The net present value of the project when adjusting for risk is ________.