Assume SAP Inc. received a $$2$ million grant under its Small Business Innovation program. SAP

invested the grant money and developed a system to remove metal contaminants from storm water

in shipyards. The firm estimates that each shipyard spends $$700,000$ a year on storm water

clean $-$ up efforts. If SAP is able to sign up and retain four shipyards from the first year onwards,

what is the present value $($PV$)$ of the project $($net of investment$)$ if the cost of capital for SAP is $14\%$

per year? Assume a cost of operations and other costs for SAP equal $40\%$ of revenue.

A$.$ $$8\mathrm{.}5$ million

B$.$ $$10$ million

C$.$ $$8$ million

D$.$ $$10\mathrm{.}5$ million