North Pole Inc

North Pole Inc., a Canadian company, has an opportunity to invest in India.The project requires an immediate cash outlay of $2 million and is expected to provide after-tax cash flows of $600,000 in year 1, $800,000 in year 2, $1,000,000 in year 3, and $1,200,000 in year 4.The beta for a similar project in Canada is 1.2.The risk-free rate is 5% and the market risk premium is 7.5%.The risks of implementing such a project in India will require a risk premium of 4.5%.What will be the impact on the shareholder value of North Pole Inc.if the firm undertakes this project?

A) $285,564 increase
B) $527,358 increase
C) $616,918 increase
D) $917,295 increase