Alien Corp. has been considering building an adult resort on a site originally purchased as investment property. Alien paid a consultant $250,000 to determine whether the plan is feasible, and has recently found that the site is worth $2.5 MM. The original purchase price was $1 MM. If the expected outlay for building and staffing the resort is $4.5 MM, what is the Net Investment when running an NPV?

a.

$4.5 M

b.

$5.75 M

c.

$7.0 MM

d.

$7.25 MM