A high-tech firm producing medical equipment is planning to invest in the development of a new product using artificial intelligence. This product will take 3 years to develop and will cost $450 million per year during the development stage. During the fourth year, the new product is expected to generate revenues of $160 million with an expected growth rate of 12% per year until the end of the tenth year. After the first 10-year period, the revenues are expected to grow at the rate of only 3% and continue at that rate forever. However, after 10 years of operation, the firm will incur new R&D expenditures of $45 million per year forever in order to keep the product up to date. The cost of capital is estimated to be 8%. The NPV of this project is ___________ .

Select one:

a. -$1,673.78 million

b. $257.85 million

c. $2,514.73 million

d. - $135.23 million

e. -$38.64 million