K-Roo Ltd. wants to establish a subsidiary in Belgium. Unfortunately, the Belgian prime minister prefers koalas and may shut down (part of) K-Roo's operations. K-Roo therefore expects to be present in Belgium for two years at most, after which it will will move its subsidiary to France. The expected cash flows for the first year are 18.9 million if the Belgian subsidiary survives and 4.4 million if the Belgian government intervenes. Expected cash flows are 13.6 million if the subsidiary survives in year 2 and 2.9 million if the government intervenes. The subsidiary shuts down after year 2; there are no further cash flows. K-Roo thinks there is a 49% chance of government intervention in year 1 and a 63.1% chance of government intervention in year 2. The discount rate is 6% p.a. What is this project's NPV? a. 2.0340 million b. 6.5685 million c. 9.8694 million d. 5.6333 million e. 14.2358 million