You Are Given the Opportunity to Play a Game of High

You are given the opportunity to play a game of high stakes gambling.The game begins by you paying an entry fee of $35,000,000 followed by a fair coin toss.If the coin toss is "heads" then you have an 80% probability of receiving a perpetuity of $10,000,000 per year and a 20% probability of receiving a perpetuity of $1,000,000 per year.Assume that the proper discount rate for the perpetual cash flow is 10%.If the coin toss is "tails"you can continue to play but you will lose $50,000,000 with certainty.Alternatively,you can make a make an opt-out payment of $10,000,000 after a "tail" to prevent you from going down such a costly path.What is the present value of playing such a game?

A) $1,000,000
B) -$1,000,000
C) -$39,000,000
D) none of the above