Smith Inc'S Cost of Capital Is 11% and the Risk-Free Rate

Smith Inc.'s cost of capital is 11% and the risk-free rate is 5%. The company plans to invest in a new project. The cash flow projections ($000) for the project are given below. Calculate the certainty equivalent NPV ($000) .

A) ($51.22)
B) ($54.38)
C) $51.22
D) $22.41