The Bull Company, a lawn mower manufacturer, is considering the introduction of a new model. The initial investment required is $22 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
1	$15 million	0.90
2	13 million	0.75
3	11 million	0.55
4	9 million	0.30

The firms cost of capital is 12% 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 projects certainty-equivalent NPV?

		$15,305,620
		$6,628,400
		$5,646,320
		$3,848,380