The company Holiday is proposing to undertake a scale expansion of its tourist holidays. It would cost $40 million and produce an expected cash flow of $8 million a year in perpetuity before interest and corporate tax. The tax rate is 35%. Suppose that Billie who is the financial officer wishes to apply a WACC of 15%. Advise Billie as to the NPV of the project to the firm:

a. $21.48 million

b. $12.91 million

c. −$9.05 million

d. −$5.33 million