Good day

Can someone please explain the answer.

heres the question

1.An initial investment of $1mill in a venture capital project is ecpected to pay $10mil at the end of 5 yrs if it is successful. The probabilities of failure for the project are provided below:

**Year failure of probability**

- 1 0.3
- 2 0.25
- 3 0.2
- 4 0.2
- 5 0.2

If the cost of capital for the project is 18%, The projects expected NPV is closest to:

- A -731 200
- B 174 950
- C 906 150

ANSWER = B

I worked out the answer to C

=(-1m + 10m/1.18^5) * 0.2688

Much appreciated