Houndlight is considering opening a new store in Brisbane. Houndlight must open the new store either now or in exactly one year.

If Houndlight opens the store now, it will cost Houndlight $$1\mathrm{.}7$ million immediately to open the new store. Houndlight expects to receive an annual cash flow of $$300,000$ in perpetuity. Houndlight has the option to close the store at the end of the third year and sell the store for $$6\mathrm{.}226$ million.

If Houndlight opens the store in one year, the probability of market demand being high and low is $52\%$ and $48\%,$ respectively. If the market demand is high, Houndlight will spend $$5\mathrm{.}3$ million to open the new store, and expect to receive an annual cash flow of $$810,000$ in perpetuity. If the market demand is low, Houndlight will spend $$2\mathrm{.}65$ million to open the new store, and expect to receive an annual cash flow of $$486,000$ in perpetuity.

The cost of capital for this project is assumed to be $5\mathrm{.}3\%.$

The NPV of this project for Houndlight is closest to:

a$.$ $$4\mathrm{.}45$ million

b$.$ $$7\mathrm{.}11$ million

c$.$ $$7\mathrm{.}90$ million

d$.$ $$8\mathrm{.}69$ million