QUESTION 15 4 points The owner of the Seattle Supersonics professional basketball team, James Naismith, is interested in building a new state-of-the-art hotel right next to the Seattle Supersonics home area. His firm, Seattle Basketball LLC estimates that the hotel would require an initial investment of 20 million, would produce positive cash flows of $5 million n yent at the end of each of the next 10 years and can be salvaged (after-tax) for $25 million at t=10 Seattle Supersonics LLC recognizes that the cash flows could, in fact, be much higher or lower, depending on whether that are becomes a popular living area for young working U.S. professionals. It is believed that at the end of two years, a 30 percent chance exists that young U.S. working professionals will NOT be spreading in that direction and yearly cash flows will be only $3 million for 10 years with an after-tax salvage vnlue of S21 million, and a 70 percent chance exists that young U.S. working professionals WILL be heading that way and the yearly cash flows will be 56 million for 10 years with an after-tax salvage value of $31 million. If the firm waits two years, the initial investment will be $22 million. The project's cost of capital is 12 percent. Should the fimm proceed with the project today or should it wait two years before deciding? (Round to the nearest dollar) a. Build now since the NPV of building today is $3,679,760 better than the NPV for waiting two yenus, b. Build now: the NPV of building today is $501.255 better than the NPV for waiting two years. c. Build it in two years since the NPV of building them is $469,058 better than the NPV for building now. d. Build now since the NPV of building today is $3,378,937 better than the NPV for waiting two years o. None of the above is within $100 of the correct