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?

a. $45.21 million. b. $70.00 million. c. $35.54 million. d. $52.53 million