The Bull Company, a Lawn Mower Manufacturer, Is Considering the Introduction

The Bull Company, a lawn mower manufacturer, is considering the introduction of a new model.The initial outlay 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:

The firm's cost of capital is 14% and the risk-free rate is 6%.Bull uses the certainty-equivalent approach in evaluating above-average risk investments such as this one.What is the project's certainty-equivalent NPV?

A) $20,083,000
B) $6,628,400
C) $13,905,000
D) $3,019,400