An investor gathered the following information about a venture capital project:

Initial Investment in project

$400,000

Estimated payoff if project is successful

$12 million

Time to payoff for project

8 years

Probability of project's survival until end of year 8

15%

Investor's required rate of return

17%

The Net present value of the venture capital project is closest to:

a.$112,608

b. $172,608

c. $452,608