XBrioni Inc., a fashion division of a company, is considering the purchase of new equipment with an expected life of five years. The equipment requires an initial investment of $44,500,000. The expected inflows, outflow, and certainty equivalent coefficients (CEC) are given in the table below.The historical average stock market return is 10.90%, thereturn on U.S. Treasury bond is 5 percent (risk-free rate), and the beta coefficient of the division is 1.76 (due to the high risk of changing fashion).

Year	Expected Cash flow	CEC
0	-$44,500,000.00	100%
1	$21,000,000.00	88%
2	$20,500,000.00	81%
3	$19,000,000.00	79%
4	$18,500,000.00	71%
5	$17,800,000.00	69%

a. What is the risk adjusted NPV of the project based on risk adjusted discount rate approach.

b. What is the risk adjusted NPV of the project based on certainty equivalent approach.

c. What approach do you use. Do you suggest the company takes this project? Justify your suggestion.

Can you show formulas and calculations please.