Severn plc is assessing a new project to expand its business. It will require an investment of £20m and will generate incremental cashflows of £1.75m for each of the first 5 years and then £2m each year in perpetuity. If the cost of capital is 8% what is the net present value for the project (to 1 decimal place)? 

a.27.1%

b. 16.6%

c. 35.0%

d. 12.9%

e. None of these answers