The Bull Company, a lawn mower manufacturer, is considering the introduction of a new model. The initial outlay required is $18 million. Net cash flows over the 4-year life cycle and the corresponding certainty-equivalents of the new model are as follows:

Year Net Cash Flow Certainty-equivalent Factor

1 $12 million 0.90

2 $11.5 million 0.80

3 $13 million 0.60

4 $ 8 million 0.55

The firm's cost of capital is 18% and the risk-free rate is 8%. Bull uses the certainty-equivalent approach in evaluating above-average risk investments such as this one. What is the project's certainty-equivalent NPV?

Question 9 options:

	$19,170,565.50
	$9,313,539.98
	$12,467,124.81
	$4,776,630.98