Estra Teneca is considering developing a new drug. The company will invest $1400000. Sales of the drug will generate free cash flows of $200,000 in the first year. After one year, the drug will either fail to capture mass market and will generate free cash flows of only $400,000 during the next 8 years (the period of the patent on the drug) and zero after that. Or, it will have mass adoption and will generate free cash flows of $800,000 during the next 8 years (the period of the patent) and zero after that. The company has the ability to sell the patent to a larger biotech company for $2.5 million at the end of 1 year, after knowing if it is a massive success or not. You expect that the drug will be successful with a 80% probability and you require a 20% return. What is the NPV of the investment? Select one: a. $1118029 b. $1496634 c. $1282223 d. $2002628 e. $1229819