SAP Inc. received a $$1\mathrm{.}5$ million grant under its Small Business Innovation program. SAP invested the grant money and developed a system to remove metal contaminants

from storm water in shipyards. The firm estimates that each shipyard spends $$500,000$ a year on storm water clean $-$ up efforts. If SAP is able to sign up and retain four

shipyards in the first year onwards, what is the present value $($PV$)$ of the project $($net of investment$)$ if the cost of capital for SAP is $12\%$ per year? Assume a cost of operations

and other costs for SAP equal $40\%$ of revenue.

A$.$ $$6\mathrm{.}8$ million

B$.$ $$8\mathrm{.}5$ million

C$.$ $$8\mathrm{.}93$ million

D$.$ $$7\mathrm{.}23$ million