A project has an investment cost of CF50m and is expected to produce risky cash flows perpetually and which will on average be CF15m p.a but fluctuate with a volatility of 30% p.a. The stock market is expected to have a return of 15%p.a and is likely to experience volatility of 20% p.a. the correlation between the project's cash flows and the market's return is 0.5. The central banks treasury bond yeild is 300 basis points.

NPV of this project is therefore?

a. 75m

b. 125m

c. 133m

d. 83m