An entrepreneur is considering a 5-year project requiring a $500,000 investment. He believes there is a 65% chance the project will be successful, in which case it will generate annual cash flows of $200,000. However, he also thinks there is a 35% chance that annual cash flows will be only $25,000. The entrepreneur will be able to observe whether the project will be successful immediately after its launching. If it is successful, then he will expand the scale of the project by a factor of 10. What is the value of the option to expand assuming a discount rate of 15%?

A) $962,132.98

B) $927.244.50

C) $997,021.46

D) $851,205.39

E) $885,567.12