An American oil company wants to do a project in Venezuela. The project costs $125 million. The project predicts to yield $70 million per year forever. If the probability of expropriation of the project is 20% in each period, then, assuming a 10% discount rate, the net present value of the project is _________.

Select one:

a.

$61.67 million

b.

-$61.67 million

c.

-$78.33 million

d.

$46.67 million