Diamond Inc. is considering purchasing a diamond mine.They estimate that after taxes the mine will generate $2 million dollars a year in free cash flow for the next two years.Starting in the third year they expect the cash flows to decline by 5% per year forever as the supply of diamonds in the mine declines.If Diamond Inc has an Opportunity Cost of Capital of 15% what is the maximum price they should pay for the mine?

a. $10.75 Million

b. $10.00 Million

c. $10.43 Million

d. $9.30 Million