Jeff received a $2 million grant under its Small Business Innovation program. Jeff invested the grant money and developed a system to remove metal contaminants from storm water in shipyards. The firm estimates that each shipyard spends a year on storm water clean-up efforts. If Jeff is able to sign up and retain four shipyards from the first year onwards, what is the present value (PV) of the project (net of investment) if the cost of capital for Jeff is ______ % per year? Assume a cost of operations and other costs for SAP equal ______ % of revenue.

8 million A

8.5 million B

10 million C

10.5 million D