Tigertainment plans to open a new factory in Sydney. Due to technical reasons, Tigertainment must open the new factory either now or in exactly one year. If Tigertainment opens the factory now, it will cost Tigertainment $1.1 million immediately to open the new factory. Tigertainment expects to receive an annual cash flow of $200000 in perpetuity. The manager has the option to close the factory at the end of the first year and sell the factory for $2.4 million. If Tigertainment opens the factory in one year, the probability of market demand being high and low is 60% and 40%, respectively. If the market demand is high, Tigertainment will spend $1.6 million to open the new factory, and expect to receive an annual cash flow of $290000 in perpetuity. If the market demand is low, Tigertainment will spend $0.6 million to open the new factory, and expect to receive an annual cash flow of $150000 in perpetuity. The cost of capital for this project is assumed to be 10%. The NPV of this project for Tigertainment is closest to: a. $1.04 million O b. $1.26 million O c. $1.14 million O d. $1.39 million