Can someone answer these questions and show their work on how to solve the problems??

Here is the ORIGINAL data of the Sporthotel problem:

1. Projected outflows First year (Purchase Right, Land, and Permits) $1,000,000

Second Year (Construct building shell $2,000,000

Third Year: (Finish interior and furnishings) $2,000,000

TOTAL $5,000,000

2. Projected inflows If the franchise is granted hotel will be worth: 8,000,000 when it opened

If the franchise is denied hotel will be worth: 2,000,000when it opened

The probability of the city being awarded the franchise is 50%.

Suppose that everything is the same as in that problem except TWO things: the worth of the hotel, should the city be awarded the franchise, is not $8 million but some unknown smaller number; and the probability of getting the franchise is NOT 50% but is upgraded to 80%. What must the new worth of the hotel when the franchise is granted be in order for the NPV of the Sporthotel project to be equal to exactly zero?

	a.	The value of the hotel should the city be awarded the franchise = $6.00 million
	b.	The value of the hotel should the city be awarded the franchise = $5.25 million
	c.	The value of the hotel should the city be awarded the franchise = $6.50 million
	d.	The value of the hotel should the city be awarded the franchise = $4.50 million
	e.	The value of the hotel should the city be awarded the franchise = $5 million

Assume that everything is the same as in that problem except for one thing: the first year projected outflow is not $1 million but instead is $1.3 million. Given this change, which of the following is true when the franchise is granted?

	a.	The projects NPV = $0.80 million
	b.	The projects NPV = $0.90 million
	c.	The projects NPV = $0.60 million
	d.	The projects NPV = $1.00 million
	e.	The projects NPV = $0.70 million