In less than three decades, China has become the second largest economy in the world. But this rapid growth has led to a lot of environmental and health issues. These developments have placed environmental pollution at the top of the government’s reform agenda. Suppose that Sinochem Group, a large conglomerate primarily engaged in the production and trading of chemicals, fertilizer, and exploration and production of oil, is considering building a large chemical production factory near the Huangpu River. The NPV of the project is ¥20,000,000. This value does not include fines for cleaning up the river of the chemical waste from the factory, which might additionally cost at least ¥3,000,000. On the other hand, the company may invest in a particular filtering solution which reduces pollution to zero, but has a cost of ¥5,000,000. Which solution would you choose if you were the CEO of the company?