Suppose a capital investment will generate cash flows in with an expected value of $$1,500$ for each of the four years and standard deviation of $$400.$ The risk$-$free rate is $5\%$ and the company uses a $10\%$ required return for investments with this level of risk. Find certainty equivalent.

a$.$ $$4754\mathrm{.}80.$ b$.$ $$2,000.$ c$.$ $$1,340\mathrm{.}41.$ d$.$ $$925\mathrm{.}42.$