A professor in the Computer Science department at the Northern Atlantic Institute of Technology has just patented a new search engine technology and would like to sell it to you, an interested venture capitalist. The patent has a 17-year life. The technology will take a year to implement (there are no cash flows in the first year) and has an upfront cost of $100 million. You believe this technology will be able to capture 1.10% of the Internet search market, and currently this market generates profits of $1 billion per year. Over the next five years, the risk-neutral probability that profits will grow at 10.1% per year is 30% and the risk-neutral probability that profits will grow at 5.1% per year is 70%. This growth rate will become clear one year from now (after the first year of growth). After five years, profits are expected to decline 2% annually. No profits are expected after the patent runs out. Assume that all risk-free interest rates are constant (regardless of the term) at 10.1% per year. a. Calculate the NPV of undertaking the investment today. b. Calculate the NPV of waiting a year to make the investment decision. c. What is your optimal investment strategy? a. What is the NPV of undertaking the investment today? $ million. (Round to three decimal places.) b. What is the NPV of waiting a year to make the investment decision? $ million. (Round to three decimal places.) c. The optimal investment strategy is to (Select from the drop-down menu.)