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 $1,000,000 Year Cash Inflow 1 $500,000 2 $500,000 3 $500,000 The net present value of the project when adjusting for risk (using RADR) is a. $87,136 b. $53,241 c. -$9,348 d. -$52,204