Tutor.com is considering a plan to develop an online finance tutoring package that has the after-tax cash flow projections shown below. One of Tutor's larger competitors, Online Professor (OP), is expected to do one of two things in Year 5: (1) develop its own competing program, which will put Tutor's program out of business, or (2) offer to buy Tutor's program if it decides that this would be less expensive than developing its own program. Tutor thinks there is a 35% probability that its program will be purchased, and the firm will receive $6.0 million (after taxes are considered). There is a 65% probability that it won't be bought, and thus the program will simply be closed down with no salvage value. What is the estimated net present value of the project (in thousands) at a WACC = 8.5%, considering the potential future purchase? Do not round intermediate calculations. WACC = 8.5% 0 1 2 3 Original project: -$3,000 $450 $450 $450 $450 Future Prob. Buys 35% Doesn't buy 65% O a $404.91 O b. $1,069.88 c. $169.88 N 3 4 O d. $439.32