A firm is considering investment in a capital project which is described below. The firm's cost of capital is 20 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 (Cost of capital - Rf) Initial Investment $100,000 Year Cash Inflow 1 $50,000 2 $50,000 3 $50,000 The net present value without adjusting the discount rate for risk is a. $50,000 b. $17,944 c. $8,714 d. $5,324