ADC Corp. is assessing a project which would require an initial investment of $200 million. The project is expected to generate $150 million in the first year, and $120 in the second year. If the inflation rate is 5% per annum and the nominal discount rate is 10% per annum, what is the NPV of the project using the real discount rate?

Select one:

a. $45.21 million.

b. $35.54 million.

c. $52.53 million.

d. $70.00 million.