Due to fierce competition in the product market. Marsstar is considering launching a new product. While the market demand for this product will be either low, medium or high, Marsstar will have a value of either $100 million, $150 million, or $191 million next year. The likelihood of these three scenarios is 44%, 18%, and 38% respectively. The cash flows are unrelated to the state of economy (i.e risk from the project is diversifiable) so that the project has a beta of 0. The risk free rate is 5%. Marsstar has zero-coupon debt with $125 million face value due next year. Assume that the capital markets are perfect. The total value of Marsstar with leverage is closes to:

a.$137 million.

b. $144 million

c.$158 million

d.$166 million