Use the following data for problems 3-4: Alpha Corp. is considering a project which will create a $7 million perpetuity from an investment of $23 million in a foreign country. The required return on this investment is 20 percent, and there is a possibility of expropriation in year 4. Assume that all cash inflows occur at the end of each year and that the expropriation, if it occurs, will occur prior to the year 4 cash inflow or not at all. There is no compensation in the event of expropriation. 3 What is the value of the project if it is NOT expropriated? (Hint: NPV) a 35.0 MM b 115.0 MM C 58.0 MM d 12.0 MM 4 What is the maximum probability of expropriation which is tolerable? a p = 0.59 b p = 0.81 C p = 0.88 d p = 0.93