Consider the case of the Fantastique Fandom Costume Company: The company has forecasted cash flows expected from a planned investment project. Considering its uncertain economic conditions, the firm's managers want to adjust the project's risk and then estimate its net present value (NPV) using the certainty equivalent factor approach. You've been assigned to complete this analysis. Using the data available to you in the following table, complete the certainty equivalent analysis for the project. Use 7% as the tax-adjusted risk-free rate in your analysis. Remember, the firm's cost of capital reflects the average riskiness of the company, and using the firm's cost of capital in your analysis would lead to a double counting of the project's risk. True or False: In general, people are risk averse, and the greater the decision maker's risk aversion, the lower the certainty equivalent. True False