Overton Inc. is considering a project which would require a $$2\mathrm{.}50$ million after$-$tax

investment today $($t $=0).$ The after$-$tax cash flows the factory generates will depend on

whether the state imposes a new property tax. There is a $40\%$ probability that the tax will

pass. If the tax passes, the factory will produce after$-$tax cash flows of $$50,000$ at the end

of each of the next $5$ years. There is a $60\%$ probability that the tax will not pass. If the

tax does not pass, the factory will produce after$-$tax cash flows of $$950,000$ for the next $5$

years. The project has a WACC of $10\%.$ If the factory is unsuccessful, the firm will

have the option to abandon the project $1$ year from now if the tax passes. If the factory

project is abandoned, the firm will receive the expected $$50,000$ cash flow at t $=1,$ and

the property will be sold netting $$1\mathrm{.}15$ million $($after taxes are considered$)$ at t $=1.$ Once

the project is abandoned, the company would no longer receive any cash inflows from it$.$

What is the project$$s expected NPV if it can be abandoned?

a$.-$ $$263,435\mathrm{.}81$

b$.+$$ $43,561\mathrm{.}45$

c$.+$$ $78,930\mathrm{.}28$

d$.+$$ $88,021\mathrm{.}19$

e$.+$$ $97,112\mathrm{.}09$