in addition what does the r stand for in the written equation below the print. thank you!

. Adamo Corp. is considering a new product that would require an investment of $6 million at t = 0. If the new product is well received, then the project would produce after- tax cash flows of $2.75 million at the end of each of the next 3 years (t = 1,2,3), but if the market did not like the product, then the cash flows would be only $1.25 million per year. There is a 60% probability that the market will be good. Adamo Corp. could delay the project for a year while it conducted a test to determine if demand would be strong or weak. The project's cost and expected annual cash flows are the same whether the project is delayed or not; however, the timing of the cash flows would change. (There would be the same number of cash flows-only the cash flows would be extended out one extra year.) The project's WACC is 10%. What is the value of the project after considering the investment timing option? PVIFA @ 10% , 3 urs a. $457,550.71 b. $541,687.78 c. $624,398.35 d. $762,584.52 e. $838,842.98 (1/0)*(1-C1/(1+r)^.)) (V.1)*(1-(1/(1+1)