ABC Co. is planning to invest in an in-house operating system for mobile phones. They have forecasted that with the new operating system the following are the expected cash flows that will be generated: - This project will generate $10 million at the end of Year 1, which will grow at a rate of 6% p.a. for the next four years (i.e. from Year 1-2, 2-3, 3-4 and 4-5). Thereafter (i.e. Year 5 onwards), the growth rate in cash flows will stabilize to 2% per year until perpetuity. If the discount rate is 10% what is the Present Value of the Cash Flows generated. (rounded to the nearest integer in million dollars). Select one:

a. 142 b. 118 c. 132 d. 198