Geek Is Us,Inc.may invest $8 million in an Alien Spectograph project.Annual costs and revenues,starting next year,are forecasted to be $3 million and $2 million growing at 0.0% and 4.0%,respectively.If the opportunity cost of capital is 6.0% and σ = 0.0,what is the investment trigger price?
A) $20.95 million
B) $30.95 million
C) $40.95 million
D) $50.95 million

Question

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The Answer of Geek Is Us,Inc.may invest $8 million in an Alien Spectograph project.Annual costs and revenues,starting next year,are forecasted to be $3 million and $2 million growing at 0.0% and 4.0%,respectively.If the opportunity cost of capital is 6.0% and σ = 0.0,what is the investment trigger price?
A) $20.95 million
B) $30.95 million
C) $40.95 million
D) $50.95 million