A firm is considering investment in a capital project with an initial investment of $1,000,000 and annual net cash flows of $500,000 per year for three years. 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 (Cost of capital - Rf). The net present value of the project when adjusting for risk is:

A.

$0

B.

-$9,300

C.

$878,000

D.

$105,000