SAP Inc received a $1 milion 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 $750,000 a year on storm water clean-up efforts. If SAP is able to sign up and retain four shipyards from the first year orwards, what is the present value (PV) of the project (net of investment) i the cost of capital for SAP is 16% per year? Assume a cost of operations and other costs for SAP equal 60% of revenue. A. $8.45 million B. $6.50 million C. $7.8 million OD. $7.15 million Consider the following average annual returns: Investment Small Stocks S&P 500 Corporate Bonds Treasure Bonds Treasury Bills Average Return 23.3% 13% 7.9% 6.8% 4% What is the excess return for corporate bonds? O A. 3.9% OB. 2% O c. 7.8% OD. 0%