BHP is setting up a lithium mine that costs $120 million today to open. It will generate $20 million in revenue for the next 10 years with operating costs being 10% of annual revenue. After that, the mine is leased out to Rio Tinto which will pay rent of $2 million a year in perpetuity. This rent starts in year 11. BHP has a cost of capital of 10%. Calculate the NPV of this project.

a.

$1,866,926.31

b.

-$1,686,926.31

c.

-$1,926,926.31

d.

$1,686,926.31

e.

-$1,866,926.31