Here is the ORIGINAL data of the Sporthotel problem: 1. Projected outflows First year (Purchase Right, Land, and Permits) Second Year (Construct building shell Third Year: (Finish interior and furnishings) TOTAL $1,000,000 $2,000,000 $2,000,000 $5,000,000 2. Projected inflows If the franchise is granted hotel will be worth: If the franchise is denied hotel will be worth: $8,000,000 when it opened $2,000,000 when it opened. The probability of the city being awarded the franchise is 50%. Assume that everything is the same as in that problem except for two things: the probability that the city will be awarded the franchise is not 50% but is downgraded to 30%, and the third year projected outflow (finish interior and furnishings) is not $2 million but $1 million. Given these two changes, which of the following is true when the franchise is granted? a. The project's NPV = $0.00 million b. The project's NPV = $0.25 million c. The project's NPV = $0.50 million d. The project's NPV = $1.00 million e. The project's NPV = $0.75 million Here is the ORIGINAL data of the Sporthotel problem: 1. Projected outflows First year (Purchase Right, Land, and Permits) Second Year (Construct building shell Third Year: (Finish interior and furnishings) TOTAL $1,000,000 $2,000,000 $2,000,000 $5,000,000 2. Projected inflows If the franchise is granted hotel will be worth: If the franchise is denied hotel will be worth: $8,000,000 when it opened $2,000,000 when it opened. The probability of the city being awarded the franchise is 50%. Assume that everything is the same as in that problem except for two things: the probability that the city will be awarded the franchise is not 50% but is downgraded to 30%, and the third year projected outflow (finish interior and furnishings) is not $2 million but $1 million. Given these two changes, which of the following is true when the franchise is granted? a. The project's NPV = $0.00 million b. The project's NPV = $0.25 million c. The project's NPV = $0.50 million d. The project's NPV = $1.00 million e. The project's NPV = $0.75 million