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"A firm is considering investment in a capital project which is described as follows, Initial Investment...

"A firm is considering investment in a capital project which is described as follows, Initial Investment $1,000,000 ; Year 1 $500,000 ; Year 2 $ 500,000 and Year 3 $500,000. The firm's cost of capital is 18 % and the risk-free rate is 6%. The project has a risk index of 1.5. The net present value of the project when adjusting for risk is ________. "

"($30,000)"

"$105,000 "

"$87,000 "

"($9,500)"
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The answer to the Question is "($9,500)

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