Your company is evaluating the prospect of purchasing a new plant from a competitor. Because of the risk involved with the endeavor, the company wants you to evaluate the value of the project adjusting for certainty in cash flow payments likely to arise from the purchase. Evaluate the net present value of the following cash flows applying a 93 percent certainty equivalent and a 7 percent risk-free rate. Year Cash Inflow 1 1,000,000 2 3 2,000,000 5,000,000 Oa. $1,762,946 Ob. $663,008 Oc. $3,000,000 Od. $1,289,540