You have been asked to analyze the net present value of building a toll road in Asia. You estimate that building the road will cost you $50 million up front and that you will generate $ 4 million in cash flows next year and that these cash flows will grow 10% a year for the following four years (Years 2-5). After year 5, you expect the cash flows to continue to grow at the inflation rate (2%). Assuming a cost of capital of 8%, what is the NPV of this project to you?

Select one:

a. $31.96

b. $35.65

c. $36.98

d. $19.04

e. None of the above